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Cash Balance plans have continued to reshape the Defined Benefit landscape. October Three’s 2026 Cash Balance Plan Report examines the latest Department of Labor Form 5500 data, covering Defined Benefit plans from 2015 through the most recent 2024 filings, to identify how Cash Balance plans are growing and how plan design is evolving.
Below are a few of the key takeaways from our 2026 report. To see the full analysis, including data on plan participants, assets, industries, geographic distribution, and interest crediting rates, download the full 2026 Cash Balance Plan Report.
Cash Balance plans have become the dominant defined benefit plan design in the United States. According to October Three, Cash Balance plans now represent approximately 65% of all Defined Benefit plans, with 24,898 Cash Balance plans compared with 13,571 traditional Defined Benefit plans based on 2024 filings.
When accounting for plans that file on an off-calendar year and had not yet submitted their 2024 Form 5500, October Three projects those numbers to reach approximately 25,600 Cash Balance plans and 15,500 traditional Defined Benefit plans.
The shift is even more apparent when looking at plan growth over time. Between 2015 and 2024, the number of Cash Balance plans increased by nearly 70%, while the number of traditional Defined Benefit plans declined by more than 50%.
Cash Balance plans are no longer a niche alternative to traditional pensions. They have become the leading design for Defined Benefit plans.
The growth of Cash Balance plans is particularly striking among plans that are still accruing benefits.
Approximately 74% of all Defined Benefit plans are currently accruing benefits, while 26% are frozen. Among accruing plans, 69% are Cash Balance plans and just 31% are traditional Defined Benefit plans.
The pattern reverses among frozen plans. Traditional Defined Benefit plans account for approximately 60% of all frozen plans, while Cash Balance plans account for the additional 40%.
Traditional Defined Benefit plans remain a significant part of the retirement landscape, but many are legacy programs that have stopped accruing benefits. Cash Balance plans, by contrast, are increasingly the active Defined Benefit solution for employers looking to provide retirement benefits today.
While traditional Defined Benefit plans still have more participants and assets overall, Cash Balance plans are steadily closing the gap.
The latest data shows approximately 9.3 million participants in Defined Benefit plans compared to roughly 8.8 million in Cash Balance plans. However, Cash Balance plans tend to have a more balanced mix of active, deferred, and retired participants, while traditional Defined Benefit plans have a larger share of retirees.
This difference reflects the changing Defined Benefit market. Traditional pension plans increasingly represent benefits earned by legacy participants, while Cash Balance plans are being used to provide benefits to today's workforce.
Cash Balance plans are being adopted across a wide range of industries, with healthcare leading in the number of plans and manufacturing leading in the number of participants.
The broad sponsorship of Cash Balance plans across industries demonstrates that these plans can be advantageous for a variety of organizations, allowing them to provide meaningful retirement benefits while managing the risks and administrative challenges traditionally associated with Defined Benefit plans.
One of the most significant trends identified in the report is the growing adoption of market-based interest crediting rates.
Among new Cash Balance plans with 100 or more participants established since 2018, 53% are market-based plans. By comparison, flat-rate plans account for 36% of new plans in the data.
Market-Based Cash Balance plans are designed to align the growth of plan assets and liabilities, helping reduce the contribution and investment risk associated with traditional Fixed-Rate Cash Balance designs.
The growing popularity of market-based designs suggests that employers are increasingly looking for the benefits of a defined benefit plan while also seeking greater cost predictability and a participant experience that’s closer to a Defined Contribution plan, similar to a 401(k).
The growth of Cash Balance plans is occurring alongside broader changes in retirement policy.
One development to watch is the Financial Accounting Standards Board's work on the accounting treatment of Market-Based Cash Balance plans. In January 2026, FASB took a significant step toward clarifying the accounting treatment of these plans. If finalized as proposed, the changes could reduce the accounting volatility associated with well-managed Market-Based Cash Balance plans and potentially make the design even more attractive to plan sponsors.
At the same time, the retirement industry continues to focus on helping employees achieve predictable lifetime income. These developments could further increase interest in Cash Balance plans.
The Defined Benefit landscape has changed dramatically over the past decade. Traditional pension plans continue to play an important role, but Cash Balance plans have emerged as the market leader, representing roughly two-thirds of all Defined Benefit plans today.
The growth of Cash Balance plans, particularly Market-Based Cash Balance plans, reflects employers' continued interest in providing meaningful retirement benefits while managing cost, funding, investment, and administrative risk.
October Three's 2026 Cash Balance Plan Report provides a detailed look at these trends, including plan growth, participants, assets, industries, geographic distribution, and interest crediting rates.
Download the 2026 Cash Balance Plan Report below to explore the data and learn more about what is driving the continued evolution of Defined Benefit plans.