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Court of Appeals ruling that IBM's cash balance plan did not discriminate against older workers, the law clears the way for adoption of these part-pension, part-savings plans. In recent years, classification and measurement of pensions have been complicated by the growth of pension arrangements that combine aspects of both types of plans--particularly defined benefit plans with a specified cash settlement option in lieu of regular retirement payments, such as in a cash balance plan. Benefits under the cash balance plan build up quickly in the early years and much more slowly near retirement age, making these plans more advantageous for employees with multiple jobs over their career. |
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