In order to meet the diverse needs of our clients, we have developed The Payden/Kravitz Cash Balance Plan Fund. The fund's objective is to earn the 30-year Treasury rate, established by the Internal Revenue Service, net of all fund expenses on a calendar year basis.

The rate of return allocated to participants in a Cash Balance Plan is guaranteed and is not dependent on the plan's investment performance. The rate of return allocated to participants changes each year and is usually equal to the yield on the 30-year Treasury bond, which in recent years has been around 5%. If the actual investment earnings exceed the amount allocated to participants (the guaranteed rate), the excess will be used to reduce future employer contributions in the following years. Excess returns are not credited to the participants' accounts.

Conversely if the plan's investment earnings are less than the amount necessary to meet the guaranteed rate, then future employer contributions will be increased to make up the difference. Shortfalls are typically amortized over five years.