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Article: Pension reform leads MeadWestvaco to shift to cash balance plan; Age bias protection may spur resurgence of hybrid design.(News)
- Article from:
- Business Insurance
- Article date:
- November 13, 2006
- Author:
CopyrightCOPYRIGHT 2006 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
RICHMOND, Va.-A huge paper packaging and office products company is converting its traditional final-average pay pension plan covering salaried and nonunion hourly employees to a cash balance plan, the first major company to do so since Congress passed legislation that protected new cash balance plans from age discrimination lawsuits.
Beginning Jan. 1, new employees at MeadWestvaco Corp. will earn benefits under the cash balance plan, and on Jan. 1, 2008, employees under age 40 will move to the new plan. Employees age 40 and older will be given the option of remaining in their current plan or shifting to the cash balance plan.
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