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Retirement

12,000 EDS employees offered early retirement option

11/01/2007

Electronic Data Systems Corp. (EDS), based in Plano, announced that it would offer early retirement to 12,000 eligible U.S. employees. The technology systems management and services company, which has approximately 136,000 employees in 64 countries, is making the offer in order to reduce costs …

Citigroup to pay $15 million for misleading retirement pitch

10/01/2007

The National Association of Securities Dealers (NASD) fined Citigroup Global Markets Inc. $3 million to settle charges of using misleading sales materials during retirement seminars for BellSouth employees in North Carolina and South Carolina. NASD also ordered Citigroup to pay $12.2 million in restitution, and it suspended three brokers who conducted the seminars …

City saves pension costs, loses $1.9 million lawsuit

10/01/2007

When the city of Ecorse hired a long-time city policeman to be chief of police, it seemed like a sound move. But problems began when the mayor terminated him because he was too old …

Retirement math must comply with PDA, Title VII—For now

10/01/2007

Can employees sue for a company practice that was perfectly lawful when it was implemented but has since become illegal? Yes, according to a recent 9th Circuit Court of Appeals case in which employees complained that a company policy didn’t give them full-service credit toward their retirement benefits during their pregnancy leave …

Court certifies class action in pension calculation suit

10/01/2007

The U.S. District Court for the Southern District of Texas recently certified a class action of current and former participants and beneficiaries of a cash-balance pension plan sponsored by United Way of the Gulf Coast. The participants and beneficiaries claimed that the plan sponsor miscalculated early-retirement benefits when it switched the pension plan from a defined-benefit plan to a cash-balance plan …

Prepare employees for benefits changes or lose their trust

09/25/2007

As your organization shifts more responsibility to employees to manage their own health and retirement expenses, you risk alienating your work force. But it doesn’t have to be that way …

Deferred-Comp plans must comply with new rules starting Jan. 1

09/01/2007

The government hasn’t required much in the way of compliance when it comes to special executive retirement perks and bonuses. That changed in April, when Congress enacted a slew of IRS-enforced regulations known as 409A. Bring your deferred-comp plans into compliance now, or your executives could face stiff tax penalties.

It’s time to figure out who will replace the boomers

09/01/2007

Despite what you’ve heard about would-be retirees clinging to their jobs long into their golden years, the average retirement age is 62. That means the boomers are going to start racing into retirement. How many employees is your organization going to lose? Chances are, you don’t know. Most organizations don’t know how old their employees are or when those in their 60s plan to retire. Supervisors may know on a case-by-case basis, but what the organization needs is an overall profile so a mad dash out the door doesn’t catch anyone by surprise …

Caterpillar sues UAW over retiree health benefits suits

09/01/2007

Caterpillar Inc. has filed lawsuits to force the United Auto Workers (UAW) to pay for health care for retirees as agreed in union-negotiated contracts. Caterpillar says the UAW is backing two class-action lawsuits seeking free lifetime coverage for retirees and spouses, which the company says violates collective-bargaining agreements …

Law boosts pension portability as cash-Balance plans take off

09/01/2007

Dow Chemical Co., based in Midland, has announced it will adopt a cash-balance plan for new employees, making it the largest employer to do so since Congress passed legislation last year protecting new plans from age-discrimination lawsuits …