Navigating the retirement plan maze – New options can help keep partners happy
Abstract: Law firms weighing their retirement plan options face some tough decisions. If unfunded or underfunded nonqualified pension plans are placing a heavy burden on younger partners, should the firm switch to a defined contribution qualified plan, such as a 401(k) plan? Or is it better to have a defined benefit qualified plan that benefits older partners? This article examines several issues to consider when deciding whether to change retirement plan offerings. A sidebar describes a “hybrid” approach — the cash balance plan.