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To: RealMuLan who wrote (54451)	8/8/2006 12:20:57 AM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Court favors IBM in pension case By Riva Froymovich August 7, 2006 IBM Corp. did not commit age discrimination by changing its pension coverage in 1999, a federal appeals court ruled today, according to published reports. When IBM, based in Armonk, N.Y., adopted a "cash-balance" pension plan, which awards employees with a lump sum after departing a company, 140,000 older employees filed suit to obtain money they say they lost. - Advertisement - The employees claimed that they were denied the returns they would have received through their previous plan, in which they earned more retirement benefits during their last years of service, reports said. The new arrangement is said to benefit younger workers who are less likely to stay at a single company for an extended period. A federal judge ruled in 2003 that the plan was indeed age discrimination because it unfairly penalized older employees, however IBM appealed and won on the basis that every employee was equally treated and received the same credits. The company had been ready to settle for up to $1.4 billion had the appeal failed, according to reports. After next year, IBM plans to freeze pension benefit accruals in general, according to reports, and develop the company's 401(k) plan. investmentnews.com