Which organizations benefit when switching from a defined-benefit plan to cash balance plans?

A) organizations with many experienced employees
B) organizations with a few skilled employees
C) organizations with many young employees
D) organizations with many retired employees
E) organizations with highly skilled, young employees

Defined-Benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, determined by a formula considering factors like salary and duration of employment.

Cash Balance Plans

A type of defined benefit pension plan that holds an employee's retirement savings as a hypothetical account balance, which grows annually through employer contributions and interest credit rates.

Experienced Employees

Workers who have accumulated significant skill and knowledge in their field through prolonged exposure to various professional situations.