Submit cash-balance plan applications

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in Employment Law,Human Resources

The IRS has announced it will renew its approval process for companies wanting to switch from traditional pension plans to cash-balance plans. (IRS Notice 2007-6)

Under the Pension Protection Act of 2006, plans created after June 29, 2005, generally won’t be considered discriminatory against older workers if benefit accruals will continue after the switch. But the new law doesn’t provide absolute insulation from employee lawsuits. The IRS announcement ends an eight-year hiatus for application approvals.

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