Resource Tag: Cash balance
Cash Balance Plans
A cash balance plan is a pension plan that has certain features of a 401(k) plan. A number of companies have converted their traditional pension plans into cash balance plans. This fact sheet describes cash balance plans and outlines the differences between a cash balance plan and a traditional pension plan, and between a cash […]
Court Overturns Cash Balance Ruling
Overturning a 2003 federal district court ruling, the U.S Court of Appeals for the Seventh Circuit found that IBM did not discriminate against older employees when it adopted its cash balance plan. The case was brought by 140,000 IBM employees who saw their promised pension benefits cut by more than half when IBM converted to […]
