Summary: Recently, firms expressed concern about information on cash balance plans for retirement income. Recognizing that pensions are an important source of income for many retirees, Congress provides special tax treatment under the Internal Revenue Code for pension plans that meet certain qualification requirements. GAO describes the: (1) prevalence and features of cash balance plans; (2) factors employers considered in making a decision about whether or not to use a cash balance formula; (3) effects of using cash balance formulas on the adequacy of individual workers' retirement income; and (4) effects of current disclosure practices on plan participants' ability to address issues regarding the adequacy of their retirement fund. Most firms GAO surveyed had at least considered adopting such a plan because cash balance plans have had high visibility in recent years. These firms reported that their decisions to adopt or not to adopt a cash balance plan were based on many factors, including corporate philosophy, the need to remain competitive, and the potential impact on workers. Cash balance plans offer both opportunities and challenges to workers seeking to ensure adequate retirement income and generally are structured such that workers accrue benefits earlier in their careers than they would under most traditional defined benefit plans. GAO concluded that there was a wide variation in the quantity and quality of information that firms provided to participants in cash balance plans.