Introducing ABC’s Market Rate Cash Balance program.
When it comes to offering retirement benefits that work for everyone—both the employees putting in the hours and the cooperatives backing them—ABC is here to provide high quality programs that meet these needs. That’s why ABC is excited to announce a new retirement solution that’s flexible, transparent and built to meet the needs of today’s co-ops and their teams: the Market Rate Cash Balance program. It’s an ideal addition to any cooperative’s benefits package, giving employees peace of mind for the future and helping co-ops attract and retain top talent.
A STRATEGIC INVESTMENT
ABC didn’t build this plan just for employees—it’s also a strategic move for cooperatives looking to stand out in today’s competitive labor market. The Market Rate Cash Balance program offers predictable, stable costs that reduce risk and simplifies funding requirements compared to traditional pensions. Unlike traditional pensions that heavily favor older workers, our Market Rate Cash Balance program spreads value more evenly across all ages and stages.
The ABC Market Rate Cash Balance program was created with input from co-ops, serving as a modernized approach to retirement planning. The cooperative retains tax deductibility of contributions. This program is also a natural transition from a traditional pension plan and is a qualified plan that allows for funding from excess assets of an existing traditional plan.
As our industry evolves, so must retirement planning. Cooperatives need benefits that are both competitive and sustainable. Our new Market Rate Cash Balance program delivers just that. It honors the legacy of traditional pensions while embracing the flexibility and transparency today’s employees expect. This plan offers a new path forward. Contact ABC today and let us help to evaluate how this program can support your team and strengthen your cooperative.
ABOUT THE PLAN
At its core, a cash balance pension plan is a type of defined benefit retirement plan that looks and feels more like a 401(k). Instead of calculating retirement benefits with a complex formula, the cash balance approach tracks benefits using a notional account for each employee. This account grows in two key ways:
- Employer Contributions: Based on a percentage of the employee’s salary, these contributions grow with years of service.
- Interest Credits: These are based on market performance, giving employees the potential for greater growth over time.
Employees don’t contribute to the plan directly—it’s fully funded by the employer. That makes it a true added benefit, not just a retirement account that employees fund themselves.
The ABC Market Rate cash balance plan was built to address the needs of cooperatives across the region. It integrates market-based performance while keeping a firm footing in security and guarantees. The account grows in value based on pooled investments managed by top-tier investment professionals, a setup designed to maximize long-term returns. Employees can easily track the value of their account, and if they move on, the account value is portable within certain limits. In contrast to traditional pensions, where benefits are often backloaded or hard to understand, our Market Rate Cash Balance program is simple, scalable and better aligned with the realities of today’s workforce.
“The ABC Market Rate Cash Balance program was created with input from co-ops, for co-ops, and with ABC’s specialized support, co-ops won’t have to navigate the change and its complexities alone.”
BENEFITS FOR EMPLOYEES
One of the standout features of ABC’s Market Rate Cash Balance program is its flexibility at retirement.
When the time comes, employees can personalize how they receive their benefit. This flexibility is especially important for employees near retirement age, offering them the ability to structure a plan that matches their lifestyle, goals and risk tolerance.