Expect the debut of Defined Benefit 401(k) Plans in 2010, as the applicable provision of the Pension Protection Act of 2006 comes into effect on January 1, 2010.
Some information from the above-listed source, accounting WEB:
"New option: Enter the DB/401(k). It is available for the 2010 plan year to employers with at least two employees and no more than 500 employees.
The DB/401(k) combines a defined benefit plan based on final average pay with a safe-harbor 401(k). Two requirements:
1. The defined benefit part of the plan must provide a benefit equal to 1% of the final average pay times years of service up to a maximum of 20% of final pay. (A more complex structure is required if a cash balance plan is used instead of a final average pay plan.)
2. The 401(k) part of the plan requires automatic enrollment with an employee deferral of 4% of compensation. Matching contributions for HCEs can’t exceed the matching contribution rate for non- HCEs. Employees must be immediately vested in their 401(k) accounts."
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