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Court Ruling Favors Cash Balance Conversions
by Judy Greenwald
Posted on Nov. 23, 2005 1:19 PM CST
See Complete Court Document: Case
2:04-cv-06097-LDD
Document 44-1 Filed 11/21/2005
PHILADELPHIA—In a victory for employers that
offer cash balance pension plans, a federal
district court has dismissed a case against
PNC Financial Services Group that was
brought on behalf of its employees and
retirees in connection with the company’s
switch to a cash balance plan.
Pittsburgh-based PNC replaced its
traditional defined benefit plan in 1999.
The plaintiffs filed suit against the
company and its pension plan in December
2004, arguing, among other things, that the
plan was age discriminatory.
Plaintiffs charged in Sandra Register vs.
PNC Financial Services Group Inc. that the
plan change violated the Employee Retirement
Income Security Act of I 974 for several
reasons, including: it resulted in the
absence of benefit accruals for several
years for some participants; benefit
accruals were more substantial for younger
participants; the plan change notification
did not comply with ERISA; the summary plan
description violates ERISA; and the
defendants did not meet their fiduciary
duties.
But Judge D. Davis Legrome of the U.S.
District Court in Philadelphia on Monday
dismissed all the charges against the
company in his decision.
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