jacoblund / Getty Images Understanding how cash balance pensions work can help you boost your long-term wealth. Key Takeaways Cash balance pensions make up almost 50% of all defined benefit plans. They combine features of a traditional pension and 401(k). The employer-funded contributions and interest guarantee growth annually without the investment risk. Cash balance pensions have seen significant growth over the past two decades, with their numbers increasing 15-fold and now accounting for nearl ...