Retirement: Cash Balance - Archive

(Items in italic are available only to Council members.)

Official Source Documents November 4, 2005— GAO Report: Information on Cash Balance Plans October 26, 2005 — "Dear Colleague" Letter from Boehner and Thomas to Full House Regarding Cash Balance Measures October 7, 2005 — Pension Benefits Protection Act (H.R. 4052, Sanders) October 5, 2005 — Rep. Sanders Dear Colleague Letter Regarding Pension Benefits Preservation and Protection Act September 8, 2005 — AARP Letters to Senate HELP Committee Regarding Concerns with Hybrid Plan Provisions June 23, 2005 — Pension Benefits Protection Act (S. 1304, Harkin) June 9, 2005 — Pension Preservation and Portability Act (H.R. 2831) Boehner June 9, 2005 — Boehner Summary of the Pension Preservation and Portability Act (H.R. 2831) April 25, 2005 — Republican Policy Committee Paper on the Status of Hybrid Pension Plans February 9, 2005 — Treasury Budget Explanation of Cash Balance Legislative Recommendations September 13, 2004 — Sanders Cash Balance Amendments to Treasury-Transportation Appropriations Bill September 13, 2004 — Sanders Dear Colleague Letter Regarding Amendment to Appropriations Bill May 12, 2004 — Boehner/Johnson Announce Plans to Hold a Hearing on Cash Balance Pension Plans May 12, 2004 — Boehner Letter to Harkin Regarding Cash Balance Plan Discussions November 25, 2003 — Cash Balance Language in Omnibus Spending Bill November 12, 2003 — Legislative Language of Cash Balance Provision in Final Appropriations Conference Report October 23, 2003 — Text of Harkin Amendment to Treasury/Transportation Appropriations Bill September 9, 2003 — Congressional Record of Sanders Cash Balance Debate September 9, 2003 — Sanders Cash Balance Amendments to Appropriations Bill August 4, 2003 — Congressional Dear Colleague Letter on IBM Decision and Mandated Choice (Gutknecht) August 1, 2003 — Sanders/Miller/Hinchey Dear Colleague Letter on IBM Decision and Treasury Regulations April 9, 2003 — Letter from Senators Gregg and Enzi and Representatives Boehner and Johnson to Treasury Secretary Snow Regarding Treasury and IRS Proposed Rules on Age Discrimination and Cash Balance Plans April 8, 2003 — The Pension Benefits Protection Act of 2003 (H.R. 1677, Sanders) January 30, 2003 — Press Release and Letter from Members of Congress Urging Withdrawal of Proposed IRS Regulations on Age Discrimination and Pension Plans (From the House Democratic Education and the Workforce Committee Website) July 29, 2002 — Harkin Cash Balance Whipsaw Legislation (S. 2812) July 24, 2002 — Text of Sanders Amendment to Treasury-Postal Appropriations Bill (H.R. 5120) July 15, 2002 — Sanders/Gutknecht/Hinchey Dear Colleague Regarding Cash Balance Amendment to Treasury/Postal Appropriations Bill (H.R. 5120) May 20, 2002 — Pension Protection Act of 2002 (H.R. 4778) (Sanders) May 10, 2002 — Miller/Kennedy Press Release and Letter Regarding DOL Inspector General Report on Cash Balance Benefits May 7, 2002 — Sanders Press Release on DOL IG Report on Cash Balance Benefit Payments April 11, 2002 — Vested Worker Protection Act (H.R. 4181) (Gutknecht) September 29, 2000 — GAO Report on Cash Balance Plans: Implications for Retirement Income April 11, 2000 — Sense of the Senate Amendment regarding Cash Balance Plans (S. Con. Res 101) November 20, 1999 — Al Gore's Proposed Reforms to the Nation's Pension System October 7, 1999 — Pension Reduction Disclosure Act of 1999 (S. 1708) Moynihan October 7, 1999 — Pension Reduction Disclosure Act of 1999 (H.R. 3047) Matsui September 24, 1999 — Pension Benefits Protection and Preservation Act of 1999 (S. 1640), Wellstone September 21, 1999 — Pension Benefits Protection and Preservation Act of 1999 (H.R. 2902) Sanders September 16, 1999 — Older Workers Pension Protection Act of 1999 (S. 1600) Harkin August 5, 1999 — Older Workers Pension Protection Act of 1999 (H.R. 2759), Hinchey July 13, 1999 — Clinton/Gore Administration Pension Disclosure Plan June 29, 1999 — Older Workers Pension Protection Act of 1999 (S. 1300), Harkin March 8, 1999 — Pension Right to Know Act of 1999 (S. 659/H.R. 1176) Moynihan/Weller

Council Materials October 5, 2005 — Hybrid Plan Talking Points September 7, 2005 — Pension Coalition List of Concerns with Hybrid Provisions of Defined Benefit Security Act September 6, 2005 — ACTION ALERT: Urge Senate HELP Committee to address legitimacy of hybrid pension plan design, not conversions August 25 — Chart Comparing Hybrid Issues in H.R. 2830 (Boehner), NESTEG (Grassley-Baucus), Current Law and Administration Proposal (Courtesy of the Benefits Group of Davis and Harman) August 5, 2005 — Memo on Legal Ramifications of Prospective-Only Hybrid Plan Legitimacy Provision (Courtesy of Ivins, Phillips & Baxter) June 7, 2005 — Council testimony on hybrid plans before Senate HELP subcommittee June 7, 2005 — Summary of Council hybrid testimony for Senate HELP subcommittee September 15, 2004 — ACTION ALERT: Additional Materials Available to Oppose Sanders Cash Balance Amendments September 14, 2004 — Talking Points on Sanders Cash Balance Amendments to Appropriations Bill September 13, 2004 — ACTION ALERT: Oppose Sanders Pension Amendment on Transportation, Treasury Appropriations bill (H.R. 5025) September 13, 2004 — Updated Talking Points on Hybrid Plans July 7, 2004 — Testimony of James Delaplane on behalf of the Council before the Education and the Workforce Committee March 17, 2004 — Council Talking Points on Hybrid Plan Issues November 11, 2003 — ACTION ALERT: Members Urged to Contact Appropriations Conferees Opposing Cash Balance Provisions November 6, 2003 — Capitol Connection Letter to Appropriations Conferees Urging Exclusion of Cash Balance Provisions Download MS Word File November 4, 2003 — Analysis of Cash Balance Amendments to Appropriations Bill by Law Professor Richard A. Epstein of the University of Chicago November 3, 2003 — Council Letter to Congress Urging Appropriations Conferees to Drop Cash Balance Provision October 23, 2003 — Talking Points on Harkin Cash Balance Amendment October 23, 2003 — ACTION ALERT: Council urges senators: oppose cash balance amendments to appropriations bill October 21, 2003 — Consulting Groups' Letter to Congress Regarding Hybrid Pension Plans October 16, 2003 — Letter to Senate Regarding Harkin Cash Balance Amendment to Treasury/Transportation Appropriations Bill September 3, 2003 — ACTION ALERT: Council Urges House Members to Oppose Sanders Appropriations Amendment Halting Pension Regulatory Projects May 27, 2003 — Council Letter to the Financial Accounting Standards Board regarding Discount Rate Recommendation for Cash Balance Plans April 7, 2003 — ACTION ALERT: Council to Congress: Mandated "Choice of Plan" Bill is Ill-Advised Pension Legislation January 30, 2003 — Council Letters to Congress Regarding Cash Balance Plans and Proposed IRS Regulations on Age Discrimination January 21, 2003 — ACTION ALERT: Write Your Senators to Oppose Harkin/Feingold Cash Balance Amendment Updated regularly — CASH BALANCE BULLETINS January 15, 2003 — ACTION ALERT: Oppose Harkin/Feingold Cash Balance, Age Discrimination Amendment July 18, 2002 — ACTION ALERT: American Benefits Council Urges Members: Oppose Sanders Pension Amendment to H.R. 5120 May 2, 2001 — Council Talking Points Defending Cash Balance Approach of H.R. 10 May 2, 2001 — Council Talking Points Opposing Choice of Plan Cash Balance Mandate October 19, 2000 — Council Letter to FASB on Pension Accounting and Cash Balance Plans September 29, 2000 — Group Issue Paper on Cash Balance Provisions of Senate Finance Committee Version of H.R. 1102 September 29, 2000 — Group Issue Paper Opposing Inclusion of Early Retirement Subsidies in Wear-Away Ban August 2, 2000 — Legislative Action: July 27 Wall Street Journal Pension Article Misleads and Distorts June 5, 2000 — Testimony of Laurel Sweatt on Cash Balance Plans Before the Senate Special Committee on Aging September 9, 1999 — APPWP Testimony Before ERISA Advisory Committee April 23, 1999 — APPWP Addresses Cash Balance Issues July 20, 2000 — Legislative Action: Vote NO on Sanders Pension Amendment to H.R. 4871 January 18, 2000 — APPWP Letter Opposing Choice of Plan Mandate Legislation (H.R. 2902), Sanders November 4, 1999 — APPWP Letter Opposing the Older Workers Pension Protection Act (H.R. 2759), Hinchey October 15, 1999 — Legislative Action: Mandates in H.R. 2902 Will Undermine Efforts to Expand Pension Coverage July 27, 1999 — Group Letter Opposing the Moynihan and Harkin Cash Balance Amendments July 27, 1999 — APPWP Supports Pension Provisions of Tax Bill; Urges Opposition to Cash Balance Amendments July 27, 1999 — Members Asked to Urge Senators to Support Pension Items and Oppose Cash Balance Amendments Prior to July 28 Tax Bill Debate July 26, 1999 — APPWP Letter Opposing the Pension Right to Know Act (S. 659), Moynihan July 6, 1999 — APPWP Letter Opposing Pension Right to Know Act (H.R. 1176), Weller June 1999 — APPWP Talking Points Opposing the Older Worker Pension Protection Act (S. 1300), Harkin

Official Source Documents June 15, 2004 — Treasury Department Press Release Announcing Withdrawal of Cash Balance Regulations February 2, 2004 — Treasury Department Press Release on Hybrid Plan Recommendations, with Q&A February 2, 2004 — Bush Administration Hybrid Plan Legislative Recommendations from Fiscal Year 2005 Budget February 1, 2004 — Treasury Department Explanation of 2005 Fiscal Year Budget April 16, 2003 — Letter To Treasury Secretary Snow from Reps. Rob Portman (R-OH), Phil Crane (R-IL), Phil English (R-PA) and Jim Ramstad (R-MN) on Proposed Cash Balance Regulations. April 7, 2003 — Treasury/IRS Withdrawal of Section 401(a)(4) from Age Discrimination Regulations (Courtesy of BenefitsLink) December 10, 2002 — IRS Proposed Regulations on Application of Age Discrimination and New Comparability Rules to Cash Balance Pension Plans December 10, 2002 — Treasury Department Press Release on Proposed Regulations on Application of Age Discrimination and New Comparability Rules to Cash Balance Pension Plans November 12, 2002 — IRS Q&A Regarding Revenue Ruling 2001-62 and Cash Balance Plans April 22, 2002 — IRS Proposed Regulations Regarding Notice of Significant Reduction of Future Benefit Accrual under ERISA Section 204(h) March 29, 2002 — DOL Inspector General Report: PWBA Needs to Improve Oversight of Cash Balance Lump Sum Distributions March 21, 2001 — GAO Letter on IRS/Treasury Preamble Statement Regarding Cash Balance Plans and Age Discrimination July 6, 2000 — PBGC Regulation on Title IV Aspects of Cash Balance Plans With Variable Indices	Council Materials November 5, 2004 — Article on FASB Accounting Proposals (Courtesy of Mercer Human Resource Consulting) March 15, 2004 — Summary of FASB Cash Balance Plan Decisions (Courtesy of Mercer Human Resource Consulting) February 2, 2004 — Treasury's hybrid pension plan proposal offers some good news, some cause for concern July 25, 2003 — Council comment letter to IRS on Announcement 2003-22, use of cash balance plans as new comparability plans April 9, 2003 — Transcript of Testimony of Kent Mason on behalf of the American Benefits Council for the IRS Hearing on Age Discrimination and Cash Balance Plans March 13, 2003 — Council Comment Letter to Treasury/IRS on Age Discrimination and Pension Plans June 17, 2002 — Council Letter to Labor Secretary Chao Regarding Inspector General Cash Balance Report August 24, 2001 — Council Comment Letter Regarding Notices of Significant Reductions in Future Benefit Accruals September 25, 2000 — Comment Letter to PBGC on the Issue of Valuing Cash Balance Plans with Variable Indices July 18, 2000 — APPWP Supplemental Comments Regarding Cash Balance Conversions and Age Discrimination Prohibitions January 19, 2000 — APPWP's Detailed Comments Regarding Cash Balance Plans
Official Source Documents June 10, 2004 — U.S. District Court for the District of Maryland Decision, Tootle v. ARINC Inc. August 1, 2003 — Decision in Berger vs Xerox Cash Balance Case July 31, 2003 — Decision in Cooper v. IBM Cash Balance Case March 12, 2002 — Lyons vs. Georgia-Pacific, United States District Court, Northern District of Georgia (No. 1:97-CV-0980-JOF) July 27, 2001 — Berger et al. v. Xerox, United States District Court, Southern District of Illinois (No. 00-CV-0584-DRH) September 29, 2000 — Eaton vs. Onan Corporation, United States District Court, Southern District of Indiana (Cause No. IP97-0814-C-H/G) Georgia Pacific v. Lyons The principal issue on appeal involves the correct method of calculating lump sum payments under a cash balance pension plan. Georgia-Pacific's cash balance plan for many years calculated the lump sum amount payable at termination of employment by taking the nominal "cash balance" account by projecting the account forward to age 65 using the PBGC "applicable interest rate," plus 75 basis points, then discounting that amount back to present value using the same rate. The Georgia-Pacific plan received a favorable determination letter from the IRS with respect to this interest crediting method. In Notice 96-8, the IRS announced that cash balance plans violate Internal Revenue Code Section 417(e) unless they discount back from age 65 using the PBGC's "applicable interest rate" under Section 417(e). This would produce a larger present value than the lump sum produced by the Georgia-Pacific plan's method of discounting back from age 65. The plaintiff class in the Lyons case essentially attempted to enforce Notice 96-8 through provisions in ERISA that are parallel to Code Section 417(e). The federal district court granted summary judgment for Georgia-Pacific, essentially determining that the Code Section 417(e) regulations were unenforceable by the plaintiff class. On August 11, the 11th Circuit Court of Appeals sided with the plaintiff, ruling that the projecting forward/discounting back Treasury regulations were valid and that, as a result, the participant was indeed entitled to a lump sum amount greater than the balance in his cash balance account.	Council Materials November 4, 2005 — Council Amicus Brief in Cooper v. IBM (7th Circuit Court of Appeals) June 30, 2004 — Council amicus brief in Hirt v. Equitable December 19, 2003 — Cooper v IBM Amicus Brief October 2000 — Georgia Pacific v. Lyons Amicus Brief (Appellate Version) September 1999 — Georgia Pacific v. Lyons Amicus Brief
September 8, 2005 — Senate HELP Committee mixes its pension funding reform message: Good for funding reform, bad for hybrid plans June 21, 2005 — Council available to comment on Education and Workforce Subcommittee Pension Funding Bill markup June 7, 2005 — Council to Senate HELP subpanel: hybrid plans can help staunch the defined benefit system’s decline June 6, 2005 — Council testifies Tuesday before Senate HELP subcommittee and is available to comment on all pension-related hearings November 11, 2003 — Cash balance restrictions may be unconstitutional, legal study finds April 10, 2003 — Council urges continued improvement in cash balance, age discrimination rules April 8, 2003 — Sanders’ dangerous “mandated choice” retirement plan bill would further undermine defined benefit system April 7, 2003 — Council applauds IRS withdrawal of harmful provisions in cash balance regulations July 31, 2003 — Council comments on Cooper v. IBM cash balance pension case ruling March 11, 2003 — Council comments on IRS age discrimination regulations, urges modifications July 28, 2000 — Cash Balance Conversion Benefit Plateaus Are Not Age Discriminatory June 18, 2002 — Council to Secretary Chao: IG cash balance breach will undercut cooperative approach June 5, 2000 — APPWP Urges Senate Aging Committee to Avoid Harsh Cash Balance Legislation April 24, 2000 — APPWP Representatives Available to Discuss Cash Balance Plans, Impact of Shareholder Vote January 20, 2000 — APPWP Comments to IRS on Cash Balance Plans: Plans and Conversions Are Not Age Discriminatory January 18, 2000 — APPWP Letter Urges Hill to Cease Support of Sanders’ Mandated Choice Pension Bill November 20, 1999 — APPWP Lauds Vice President Gore's Pension Goals; Urges Caution on Cash Balance Proposals September 21, 1999 — APPWP Warns Senate Panel: Cash Balance Bills Would Endanger Defined Benefit Pension System September 9, 1999 — APPWP Advises DOL that Cash Balance Plans Serve Needs of Participants and Plan Sponsors June 30, 1999 — Cash Balance Plan Disclosure Legislation - APPWP Urges Senate Finance Panel Not to Burden Defined Benefit Pension System May 11, 1999 — Current Cash Balance Plan Coverage Shortchanges Plan Advantages, Lacks Employer Point of View April 23, 1999 — APPWP Addresses Cash Balance Issues
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Paul Dennett, Council vice president, health policy Kathryn Wilber, Council health policy legal counsel