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Statement by AARP Director of Federal Affairs David Certner on Illinois Cash Balance Court Decision

The court's decision which found cash balance pension plans to be in violation of age discrimination laws is an important and dramatic one that protects older workers. It ratifies what AARP has been saying for years about cash balance plans, that they violate age discrimination laws and are harmful to older workers.

At the same time, the court's ruling is in stark contrast to the Department of Treasury's proposed rules. The Department should withdraw those proposed regulations and issue regulations that protect older workers.

Other federal agencies – as well as Congress – should take a cue from this decision and guard against age discrimination in crafting new pension regulations.

It is crucial that when companies change the design of their pension programs, that they not discriminate on the basis of age. Older workers should be treated fairly.

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