Summary Judgment Obtained Against Challenge to Conversion of Defined Benefit Pension Plan to Cash Balance Formula; 3rd Circuit Affirms
We defended our client AT&T, Inc. in a class action lawsuit challenging the company's conversion of its traditional defined benefit pension plan to a cash balance formula. The plaintiffs alleged that this change violated the Age Discrimination in Employment Act and the Employee Retirement Income Security Act. This was one of the first of many similar lawsuits filed around the country challenging employers’ moves to cash balance formula based pension plans. We were part of a team of lawyers that obtained dismissal of most of the claims by a New Jersey federal court and thereafter obtained summary judgment dismissal on all remaining claims. The 3rd Circuit later affirmed the district court's summary judgment ruling.