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(January 18,
2007) The U.S.
Supreme Court
recently refused
to hear IBM's
high-profile
cash balance
appeal, Cooper
v. IBM Personal
Pension Plan,
leaving the
door open for
companies that
want to start
offering a
cash balance
pension.
Rather
than review
the case, the
justices let
stand an August
2006 decision
by the 7th
U.S. Circuit
Court of Appeals
that found
IBM's switch
to a cash balance
pension did
not discriminate
against older
workers. The
appeals court
found the disparity
in benefit
values was
the result
of the time
value of money,
not discrimination.
The 2006 decision
overturned
a July 2003
ruling that
the design
was discriminatory
because it
allowed younger
workers to
accrue benefits
in the plan
at a faster
rate than older
workers.
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