Stay Calm On Cash Balance Plans: Experts
Employee benefit and pension specialists are urging employers to remain calm following a July 31 decision by a federal district court judge who found that IBMs conversion from a "traditional" defined benefit pension plan to a cash balance plan was unlawful age discrimination under the Employee Retirement Income Security Act.
The case, Cooper v. The IBM Personal Pension Plan, has been certified as a class action covering about 130,000 employees and retirees. Next up is the issue of damages, and the thorny question of how to compensate the plaintiffs, given the substantial stock market losses recently suffered by many cash balance plans.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
