Case Updates
Outcome
November 08, 2005
The Chamber's motion for leave to file was denied.
U.S. Chamber defends cash balance plans
November 02, 2005
Pointing out that cash balance plans have positive attributes over traditional pension plans for both employees and employers and that invalidating cash balance plans will have drastic consequences for the nation’s retirement system, NCLC argued that the district court’s conclusion that cash balance plans violate ERISA’s prohibition on age discrimination is based on a plan feature that both the IRS and the 7th Circuit have determined is required. NCLC argued that that the district court’s interpretation of ERISA conflicts with another decision by the 7th Circuit, is incompatible with the rest of the law, and produces an irrational result. This is the first case in which a federal court has invalidated a cash balance plan based on ERISA’s prohibition against age discrimination.