2nd Circuit: Cash Balance Plan’s Definition Of ‘Normal Retirement Age’ Is Invalid
Mealey's (July 28, 2015, 11:15 AM EDT) -- NEW YORK — PricewaterhouseCoopers LLP’s cash balance pension plan violates the Employee Retirement Income Security Act because it defines “normal retirement age” as five years of service, which “bears no plausible relation to ‘normal retirement,’” the Second Circuit U.S. Court of Appeals ruled July 23 (Timothy D. Laurent, et al. v. PricewaterhouseCoopers, et al., No. 14-1179, 2nd Cir.; 2015 U.S. App. LEXIS 12678).
(Opinion available. Document #54-150812-034Z.)
The Second Circuit panel reasoned that ERISA’s definition of “normal retirement age” as the earlier of “the time a...