Because the Internal Revenue Service has not yet determined the market rate of interest return for so-called “DB(k)” plans—hybrids of pensions and 401(k)s—many companies eligible to begin offering them as of Jan. 1 are first waiting on the information. 

Companies with between two and 50 employees are eligible to offer the plans beginning this month. Based on rules in the 2006 tax code, Principal Financial and the American Society of Pension Actuaries developed DB(k)s, which would offer a small lifetime income stream based on an employee’s salary at retirement out of a lump cash sum. Both workers and their employers would make contributions to the plan.

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