Journal article
Perspective - A controversy over age in an age of cash balance controversy
Benefits law journal, Vol.14(3), p33
01 Oct 2001
Abstract
Cash balance plans face a new and significant round of judicial challenges involving their one potentially lethal legal shortcoming: their failure to satisfy the age-based accrual requirement of Section 411(b)(1)(H). Section 411(b)(1)(H) makes it unlawful for a defined benefit plan to reduce a participant's rate of accrual on account of age. Virtually all cash balance plans flunk this test if the annual benefit accrual is an annuity commencing at normal retirement age; virtually all cash balance plans pass this test if the rate of accrual is the compensation credit to the employee's hypothetical account balance. In the Eaton v. Onan Corp. case, an Indiana District Court held that cash balance plans do not violate the age-based accrual requirements. It is argued that the district court, in a result-oriented opinion that argues the language of the statute, arrived at the wrong answer.
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Details
- Title
- Perspective - A controversy over age in an age of cash balance controversy
- Creators
- Norman Stein
- Publication Details
- Benefits law journal, Vol.14(3), p33
- Publisher
- Aspen Publishers, Inc
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- [Retired Faculty]
- Identifiers
- 991021867253404721