HYBRID RETIREMENT PLANS: Policy
Protections in hybrid plans
The law should ensure that cash balance and other hybrid plans do not discriminate against older workers and that they maintain the important benefit protections of defined-benefit plans.
Congress should require that in a plan conversion, employers provide each affected individual with a personalized benefits statement that compares the benefits under the old and new plans. Such information must be shown in a comparable form (e.g., life annuity compared with life annuity) and provided well in advance of the effective date of any plan change.