<nobr>Jul 24, 2006</nobr>

New York District Court Rules Cash Balance Plans Non-Discriminatory

Another U.S. District Court has issued a ruling that the inherent design of cash balance plans satisfies the age discrimination requirements of current law. In a decision issued July 20 in the case of Hirt v. Equitable, Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York rejected a claim similar to that in Cooper v. IBM. The decision discusses in significant detail the various theories and authorities relevant to the age discrimination determination before concluding that the cash balance design satisfies the age rules.

The Seventh Circuit Court of Appeals has yet to issue its decision in Cooper. Oral arguments were heard in February and a decision could come soon. ERIC filed an amicus curiae brief with the United States Court of Appeals for the Third Circuit urging the court to affirm a lower court decision dismissing an action challenging the legality of cash balance pension plans in April. The case is Register v. PNC Financial Services Group, Inc. On July 11, a federal district judge for the District of Delaware stayed an age discrimination claim in Charles v. PEPCO pending a decision from the Third Circuit in Register.

Text Files:

Hirt v. Equitable
Websites:

Charles v. PEPCO Decision

ERIC amicus brief in Register v. PNC Financial Services Group, Inc.

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