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Cash balance plan doesn’t violate ERISA (access required)

By: Pat Murphy
Published: October 21, 2009

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A cash balance pension plan did not violate ERISA’s minimum benefit accrual rules by employing a “fractional” test method of computing accrued benefits, the 2nd Circuit has ruled in reversing judgment. Five current or former employees of Citigroup filed a class action, alleging that the company’s cash balance pension plan violated ERISA.   Specifically, the plaintiffs alleged that ...
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