a form of employee retirement advantage plan which have two distinct functions: (1) the boss plays a role in the program a quantity equal to a percentage of an employee's annual earnings and (2) the program promises a specific price of return on that share. Under a money stability program, the advantage is often expressed as an overall total account balance. Cash stability retirement programs tend to be distinct from "old-fashioned" defined benefit pension plans, which, in comparison, guarantee a member of staff a set buck amount (either on a regular or on a lump-sum basis), considering many years of solution and a worker's profits when you look at the many years closest to your retirement. The focus of cash balance programs is on wealth building and portability. On the other hand, traditional defined advantage programs are aimed at encouraging job employment with a single workplace. In recent years, substantial litigation has actually arisen out of employer conversions from "standard" defined benefit to cash stability retirement plans. Older, lasting employees which typically obtain lower benefits under cash balance plans have actually alleged that such programs tend to be unfairly discriminatory.