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Article: Qualified Retirement Plans: July 2004 Developments.(Employee Retirement Income Security Act)
- Article from:
- Mondaq Business Briefing
- Article date:
- August 5, 2004
CopyrightCOPYRIGHT 2004 Mondaq Ltd. 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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Cash balance plan scores a court victory. In an action by a former employee against a company, the federal district court in Maryland has determined that the conversion of the employer's traditional pension plan to a cash balance plan did not violate the prohibitions against age discrimination in ERISA. The court found that it was appropriate to use ERISA's rules for individual account plans, and not the rules for traditional pension plans, to measure compliance with ERISA nondiscrimination requirements. The class certification sought by the plaintiff and the plaintiff's age discrimination claims were dismissed. Tootle v. ARINC, Inc., et al., 2004 WL 1285894. ...