Which plan requires annual actuarial evaluations?

The cash balance pension plan is the correct choice, as it is required to undergo annual actuarial evaluations. This type of plan defines the benefit in terms of a hypothetical account balance, which grows annually based on contributions and a predetermined interest crediting rate, rather than as a traditional defined benefit plan that pays out based on final salary and years of service.

Annual actuarial evaluations are essential for cash balance plans because they help ensure that the plan is adequately funded to meet its future obligations. These evaluations assess the plan's assets compared to its liabilities, allowing for any necessary adjustments to contributions or funding strategies to maintain compliance with regulations and ensure the plan’s sustainability.

The other types of pension plans may not require the same level of annual scrutiny. Although money purchase and target benefit plans also have funding requirements, they operate under different frameworks that do not necessitate annual actuarial evaluations in the same way that cash balance plans do.