Illinois Court Blesses Cash-Balance Pension Plans

When Kathi Cooper joined IBM Corp. in 1979, she immediately took advantage of the company's pension plan. However, more than a decade after her start date, IBM changed its pension from a defined-benefit plan to a "cash-balance" plan. After taking a good look at IBM's new system, Cooper felt ambushed.

While IBM's former system allowed Cooper to accrue interest at a faster rate because of her seniority with the company, the new plan gave all employees, regardless of age, an equal interest rate.

staff Writer

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