Cash Balance Plans Are Not ERISA Violations: 2nd Circ.

Law360, New York (July 11, 2008, 12:00 AM EDT) -- Following the lead of three other appeals courts, the U.S. Court of Appeals for the Second Circuit agreed Wednesday that cash balance defined benefit pension plans do not discriminate against older workers.

The opinion issued Wednesday addressed two separate appeals that dealt with an identical issue: whether, before the Pension Protection Act went into effect in June 2005, cash balance defined benefit plans violated a federal law that prohibits age-based reductions in the rate of benefit accrual.

Three other appeals courts, the Sixth Circuit, the Third...
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