Pension Plans 2014 discusses the popular cash balance plan, floor offset plan and cross tested plan from an actuarial viewpoint. Many retirement plan could be upgraded to take into account benefits from a pension plan if they were understood. Contributions to these plans are made on a "benefits" basis as opposed to a "contribution" basis. The plan will favor older highly compensated employees with less time to fund for retirement. These plans are popular with professionals who understand them even though they are not as simple as a 401(k) plan.