Defined Benefit and Cash Balance Plans

A traditional Defined Benefit Plan provides for a monthly annuity payable at normal retirement age. Benefits are typically based on a specified formula involving years of service worked and sometimes include consideration of employees' career earnings or final average earnings. Such benefit formulas can also be integrated with Social Security. Generally, benefits under a Defined Benefit Plan are paid out upon retirement, death or disability.

In contrast, a Cash Balance Plan is a Defined Benefit Plan designed to look like a Defined Contribution Plan. Each year a member is allocated a contribution, defined by plan terms, and his "account" grows at a plan defined investment rate of return. Cash Balance Plans provide funding flexibility and are usually designed to provide a lump sum option at termination or retirement.

With Enrolled Actuaries and years of experience, Beyer-Barber Company is prepared to handle the complexities of both Defined Benefit and Cash Balance Plan maintenance. Beyer-Barber will provide the following services with respect to Defined Benefit and Cash Balance Plans:

Administrative Services:

• The preparation of an Annual Actuarial Valuation Report which includes the following:
  - determination of eligible employees
  - calculation of accrued accrued vested and projected benefits
  - selection of actuarial assumptions
  - determination of plan liabilities
  - determination of actuarial gains and losses
  - application of actuarial funding and asset valuation methods
  - reconciliation of plan assets
  - determination of minimum required, recommended and maximum deductible cost levels

• Preparation of individual participant statements M

• Minimum coverage testing (section 410(b))

• Top-heavy Testing

• Section 415 Testing

• IRS Form 5500 Series

• Summary Annual Report (SAR)

• Participant Benefit Elections forms
  PBGC Form 1 and Schedule A

• FASB-87 report

• Benefit improvement studies

• Cash flow projections

• Early retirement window studies

• Plan termination studies

• Plan mergers and spin-offs

• Plan document, amendment

• Ongoing monitoring of legislative and regulatory development

• Ongoing consulting on plan design and plan operation

• Qualified Domestic Relations Order (QDRO) review