Cash Balance Plans Reassessed in Light of Discrimination and Funding Litigation

Although cash balance plans are attractive to employers, they also pose greater litigation risks than traditional plans. Minimum funding requirements, complicated conversion transactions, and allegations of discrimination have emerged as prominent features in ERISA litigation over cash balance plans...

Full description

Saved in:

Bibliographic Details
Published in:	The Business Lawyer Vol. 59; no. 2; pp. 453 - 474
Main Authors:	Martin, Craig C., Amert, Amanda S.
Format:	Journal Article Trade Publication Article
Language:	English
Published:	Chicago Section of Business Law of the American Bar Association 01-02-2004 American Bar Association
Subjects:	Advantages Business structures Cash Cash balance pension plans Commercial law Conversion Defined benefit pension plan Defined benefit plans Defined contribution plans Disadvantages Employee benefits Employee pension plans Employees Employers ERISA Evaluation Federal court decisions Libraries Litigation Lump sum payments Pension plans United States > US
Online Access:	Get full text
Tags:	Add Tag No Tags, Be the first to tag this record!

Description
Summary:	Although cash balance plans are attractive to employers, they also pose greater litigation risks than traditional plans. Minimum funding requirements, complicated conversion transactions, and allegations of discrimination have emerged as prominent features in ERISA litigation over cash balance plans in recent years. In addition, in the post-Enron environment, Congress and regulatory agencies have shown renewed interest in cash balance and other non-traditional ER1SA plans. Nonetheless, prudent employers can employ cash balance plans to their benefit, so long as they are mindful of and manage the risks involved.
ISSN:	0007-6899 2164-1838