How to think about a cash balance pension
My wife has a cash balance pension plan from her very large non-profit employer. The plan guarantees at least 6.5% returns every year, and is insured by the PBGC. We get a yearly statement with the balance of the account, but I know very little else about it. It looks like when she leaves the position she'd be able to roll over the money into an IRA, or leave it with the non-profit and keep getting the guaranteed gain.
We're hoping to retire at 50 in 2030. If she leaves the job in the next couple of years, does it makes sense to leave the money in the account?
The account represents less than 20% of our retirement savings, and the guaranteed returns at that rate are favorable, so we're tempted to leave the money there. On the other hand, I don't trust that the non-profit won't make significant changes in the future, if/when it faces operational budget deficits (which I expect).
So my question is - what is actually guaranteed here? What could go wrong?