Pension Plans

Re “New Pensions May Violate Laws, IRS Says,” Sept. 1: The people griping about cash-balance plans are overlooking an important fact. Employers have the right to terminate pension plans at any time for any reason. While it is true that future benefit accruals under cash-balance plans may be less than under traditional defined-benefit plans, any type of pension plan provides greater retirement benefits than no pension plan.

For many companies converting to cash-balance plans, the options under consideration are unlikely to be the current pension plan versus a cash-balance plan. The options are more apt to be a cash-balance plan versus no defined-benefit plan of any kind. Cash-balance plans should be embraced rather than scorned.

NANCY G. ZAJAC

Encino