Montgomery Ward & Co. Inc., Schaumburg, Ill., has formed a cash balance plan for new employees and active employees, and hired John Hancock to annuitize its terminated defined benefit plan. The total defined benefit plan assets are $1.1 billion, with $812 million in liabilities and $288 million in surplus. Of that surplus, $72 million will be used in launching the new cash balance plan. The rest of the surplus will come back into the company, said a company spokesman. Merrill Lynch assisted in the search for an annuity provider.