Publications

Two Setbacks for Cash Balance and Pension Equity Plans
08/05/2003

In two unrelated ERISA decisions last week, federal courts dealt significant blows to cash balance and pension equity plans. In one decision, a federal district court ruled that IBM Corporation's cash balance plan unlawfully discriminated against older workers under ERISA. On the following day, a federal court of appeals upheld a judgment against the Xerox Corporation cash balance plan awarding participants additional lump sum benefits based on a so-called "whipsaw" claim.