Category Archives: Cash Balance

Dow Chemical Goes Cash Balance

Posted on July 17, 2007 by Suzanne Wynn

Dow Chemical announced that, starting in 2008, new eligible salaried employees will be enrolled in the company’s new cash balance plan instead of their existing traditional defined benefit plan. The new plan is named their Personal Pension Account. A traditional … Continue reading →

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Cash Balance Prototype or Volume Submitter Plans

Posted on June 19, 2007 by Suzanne Wynn

At the Cincinnati Benefits Conference last week, I was surrounded by some of the giants of plan document design, especially pre-approved prototypes and volume submitter documents. At one point, around one table during lunch, sat the writers of prototypes and … Continue reading →

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DOL Recovers Assets for Macristy Cash Balance Plan

Posted on June 12, 2007 by Suzanne Wynn

The Dept. of Labor announced that it has settled with Macristy Industries Inc. and its President, Jeffrey Barlow, for shortages in its cash balance plan. Macristy and Barlow paid $2.1 million into the plan as part of the consent judgment … Continue reading →

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Legislative Relief for Patented Plan Designs

Posted on May 21, 2007 by Suzanne Wynn

An update to the previous post about patenting plan designs – on May 17th, Rep. Rick Boucher (D-VA) introduced H.R. 2365, a bill to limit damages arising from infringing on a patent for tax planning methods. With a couple of … Continue reading →

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Design Requirements for Cash Balance Plans

Posted on May 17, 2007 by Suzanne Wynn

Yesterday was a reminder about the 3-year vesting schedule for cash balance plans. Today is a look at the design requirements for cash balance plans contained in Section 701 of the Pension Protection Act. Identifying the design requirements does not … Continue reading →

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Amending Cash Balance Plan Vesting Schedules

Posted on May 16, 2007 by Suzanne Wynn

There have been a lot of reminders about the vesting changes for non-elective contributions made by the Pension Protection Act. Today, in reviewing the cash balance design requirements contained in Section 701 of PPA, I was reminded about the change … Continue reading →

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Patented Plan Designs

Posted on May 14, 2007 by Suzanne Wynn

The ABA Law Journal recently published an article about patenting legal strategies. The article, by Steve Seidenberg, was published in the May edition and it titled Crisis Pending: Can a Patent on Legal Strategy Prevent a Client From Taking Your … Continue reading →

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Fortune 100 Companies on Cash Balance Plans

Posted on May 10, 2007 by Suzanne Wynn

Watson Wyatt released its study today of retirement plans in Fortune 100 companies. It found that, since 1985, sponsorship of defined benefit plans has dropped significantly, from 90 out of 100 companies sponsoring defined benefit plans in 1985, to only … Continue reading →

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Decision in AK Steel Cash Balance Class Action Lawsuit

Posted on April 22, 2007 by Suzanne Wynn

One of the important changes made by the Pension Protection Act was the change to whipsaw calculations for cash balance plans. Last Friday, April 20th, the Sixth Circuit Court of Appeals issued one of the first opinions to mention this … Continue reading →

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