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Article: Harkin seeks employer input on cash balance conversions.(News)
- Article from:
- Business Insurance
- Article date:
- April 5, 2004
- Author:
CopyrightCOPYRIGHT 2004 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: JERRY GEISEL
WASHINGTON-A letter sent to employer and participant groups by a U.S. senator who is influential on cash balance plan issues could be the first step to resolving the legal status of by the plans.
Sen. Tom Harkin, D-Iowa, wrote late last month to six employer and employee benefit groups, stating that employers that already have converted traditional pension plans to cash balance arrangements "need legal certainty.''
The failure to adopt sensible policy requirements for plan conversions increases the likelihood that employers will freeze or terminate the plans and offer only defined contribution plans, Sen. Harkin said.
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