Second Circuit Holds That Cash Balance Pension Plans Do Not Violate ERISA’s Prohibition on Age Discrimination
In a decision issued yesterday, the Second Circuit held that cash balance plans, a common form of pension plan, do not violate the Employee Retirement Income Security Act of 1974's ("ERISA") prohibition on age discrimination. In so holding, the Second Circuit resolved a significant split among the district courts within the Second Circuit and joined the Third, Sixth and Seventh Circuits which had each previously held that cash balance plans were not age discriminatory under ERISA.