Analysis of the IBM Cash Balance Plan Case

Deloitte & Touche has published this detailed analysis of the IBM cash balance plan case, Cooper, et. v. The IBM Personal Pension Plan, et al.: IBM's Cash Balance and Pension Equity Formulas Violate ERISA, District Court Rules . Also, Brian…

Deloitte & Touche has published this detailed analysis of the IBM cash balance plan case, Cooper, et. v. The IBM Personal Pension Plan, et al.: IBM’s Cash Balance and Pension Equity Formulas Violate ERISA, District Court Rules .

Also, Brian Tumulty for the Journal Washington bureau via the Poughkeepsie Journal reports on the IBM and Xerox cash balance plan cases: “Pension rulings put pressure on fed officials: IBM says it will appeal decision.” The article provides an interesting view of how some plaintiffs’ lawyers are viewing the decision and quotes Eva Cantarella, a Michigan-based lawyer who represents Georgia Pacific employees in a pension case pending before the 11th U.S. Circuit Court of Appeals in Atlanta, as saying:

[M]any employers have amended their plans to avoid the deficiencies that occurred in the IBM and Xerox plans. A lot of them have done a pretty good job or come so close that we wouldn’t even bother bringing a suit. . .We have looked at over 40 plans and only felt compelled to file lawsuits in two.

Apparently, Cantarella also represents employees challenging the legality of pension plan changes at another paper company, Bowater.

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