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Primary Type of Defined-Benefit Formula

By Staff Report

Nov. 19, 2000

From a Hewitt survey of 773 employers who were asked to indicate the criteria on which they based their defined-benefit plans:

% of Employers
Highest Average Pay 72%
     5-year average 55%
     3-year average 15%
     other (e.g., 10-year average) 2%
Career Average Pay 9%
Cash balance 16%
Pension equity 3%
Other (e.g., fixed dollar only <1%

Source: Hewitt Associates, LLC


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