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Pension Wars: The Fallout after IBM

Date: April 16, 2003
Author: Janet Novack
QUOTE: But ever since disgruntled IBM employees brought the issue to public attention, the movement by major corporations to convert traditional defined-benefit plans to so-called cash-balance pension plans has been a lightning rod for workers'--and particularly baby boomers'--growing anxiety over their retirement incomes.

ABSTRACT: Since 1999, the federal government has resisted entering into the fray over whether cash-balance retirement plan conversions violate age-discrimination rules. But now the government is considering setting up guidelines and tests to ensure that pension plans are fair. Opponents of cash-balance retirement plans say that conversion from the traditional defined benefit plan is unfair to workers who have stayed with the same company for many years, while proponents say the cash-balance plan offers employees more career flexibility by not punishing job-hopping and other career choices.
--- Christian Heinze

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