Fund Overview

The Payden/Kravitz Cash Balance Plan Fund is the first and only mutual fund designed exclusively for Cash Balance retirement plans.

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. This rate has averaged around 3% to 4% in recent years. 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.

The Payden/Kravitz Cash Balance Plan Fund is designed to remove the burden of investing for a very complex pension plan while simplifying performance monitoring. View the fund brochure here. To purchase the Payden/Kravitz Cash Balance Plan Fund, please contact Payden & Rygel at 213.625.1900 or 800 5-Payden.