Wednesday, August 27, 2008

News You Can Use: Another court rules in favor of cash balance plans

Making it the fifth appeals court to find that cash balance plans do not violate age discrimination law, a San Francisco court joined four others to rule in favor of the plans.

All five courts rejected the argument that the plans unfairly helped younger workers because the annuities they received ultimately would be worth more than the benefits of older workers. Many legal experts believe this is the end of litigation on this issue, with one actuary telling Workforce Management, “There is little doubt that the issue finally has been settled.”

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