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Erisa Retirement Benefits
ERISA Cash Balance Plans: The New Defined Benefit Plans
Posted by: George M. Johnson
March 01, 2007
Much talk is given to cash balance plans but little is understood about them. In 2003 the U.S. District Court for theSouthern District of Illinois ruled in favor of plan participants claiming age discrimination in Cooper v. IBM Pers. Pension Plan, 274 F. Supp. 2d 1010 (S.D. 111. 2003). The decision set off a sea of controversy. The Seventh Circuit's reversal (457 F.3d 636 (7th Cir. 2006)), combined with recent legislation, left many cash balance proponents breathing sighs of relief and observers puzzled over what the age discrimination claim is and what the court of appeals ruling means to cash balance litigants.
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