E-Alert Item: Bush Administration Proposes Rules on Converting to Cash-Balance Plans Without Violating Age-Bias Laws

When employers convert traditional retirement plans to cash balance plans, the conversion often results in less money for workers who are closer to retirement age. And, as a result, cash balance plans have come under fire in recent years as being unfair to older workers–and possibly illegal under federal age bias laws. But the Bush administration has now announced proposed regulations that would protect employers from age discrimination liability when converting to a cash balance plan. In the February issue of CEA, we’ll tell you what you need to know about the proposed rules.