Like traditional pension plans, and unlike 401(k) plans, cash-balance plans are wholly funded by employers and insured by the federal Pension Benefit Guarantee.
But ever since disgruntled IBM employees brought the issue to public attention, the movement by major corporations to convert traditional defined-benefit plans to so-called cash-balance pension plans has been a lightning rod for workers'--and particularly baby boomers'--growing anxiety over their retirement incomes.
Mortgage lending has not rebounded (and housing sales are weak), consumer spending seems pretty moderate, and most business either have ample cash already on the balance sheet or no immediate plans to expand.