Market-based interest crediting rate accounts for 53% of all new cash balance plans
CHICAGO–(BUSINESS WIRE)–October Three, an industry-leading retirement strategy consulting, technology and administration firm, today released its 2026 Cash Balance Plan Report. The report contains an in-depth analysis of Cash Balance plans using Department of Labor data from 2015 through the most recent 2024 filings.
October Three’s research found that Cash Balance plans now make up 65% of all DB plans in the U.S. Of all new Cash Balance plans with one hundred participants or more since 2018, 53% are using a market-based (market-return) interest crediting rate compared to flat rate plans which comprise only 36% of all new Cash Balance Plans the data shows.
In the Report:
- In-depth analysis of Department of Labor data for all Cash Balance plans in the U.S.
- Comparison of Cash Balance and Traditional DB plans by the number of plans, assets and participants
- Breakdown of Cash Balance and Traditional DB plan participants by type
- Breakout of the top industries for Cash Balance Plans
- Distribution of Cash Balance plans in each U.S. state
- Analysis of Interest Crediting Rates (ICRs) for U.S. Cash Balance plans
“Cash Balance plans, and in particular Market Based Cash Balance plans, have experienced extraordinary growth over the past decade,” said Jeff Stevenson, CEO of October Three. “We’ve seen a huge interest among firms, both professional service firms and larger corporations, in setting up cash balance plans for their businesses. Market based plans are by far the most popular because they carry the least amount of risk since they align liabilities to assets and provide a ‘DC’ experience to participants. They are also the least burdensome for employers to administer. We expect this trend to continue for a long time.”
October Three is the nation’s leader in cash balance plan design and administration, specializing in Market Based Cash Balance plans. O3’s Daily Platform was built specifically for Market Based Cash Balance plans to provide a DC-like experience and daily valuation. The company works with employers and advisors to build high-return, low-risk plans that provide predictable lifetime income for retirees.
Click here to download October Three’s 2026 Cash Balance Plan Report.
About October Three:
October Three LLC is a full service actuarial, consulting and technology firm that is re-engineering defined benefit plan strategy, management and administration to meet the needs of the modern and future workforce. The company’s O3 PRIME plan is based on cutting-edge technology, risk re-alignment, and data-driven insights to minimize financial risk and volatility while maximizing employees’ potential for predictable retirement income. For more information, please follow October Three on LinkedIn and visit our website at octoberthree.com.
Contacts
Media Contact:
Sean Harris
October Three Consulting
+1 512.553.6404
[email protected]
