Discrimination on Cashing Out DB Pension Plans

[Guest moginsberg]

My question involves a possibility of age discrimination from cashing out a defined benefit pension for employees. IBM has a suit in progress which last I heard is under appeal. It is especially of interest to me as I worked for a competitor of IBM, and like IBM they cashed out my pension in 1995. At that time I was over 40 yrs old. The short of it is that the amount they cashed me out at I suspect is far lower than the value that I should have received, if I was left in the traditional plan. I was RIF'd in 2001, and I rolled over my cashed out pension to an IRA later that same year. The other factor is that I signed papers in return for a generous severance package, which releases the company for any claims that I might have against them.

If IBM loses in its appeal I believe it may have an impact on me. My questions: could I have a case against the successor to the company that released me? Should I try to organize others in my situation? Any advise?

Mo

[david rigby]

Not enough facts. You say "cashed out". Does this mean

- "converted to a cash balance plan" or

- (more likely) "terminated the plan and offered participants a cash distribution"?

Just as importantly, what is your basis for suspecting the value is "far lower than the value that I should have received..."?

[mbozek]

You need to consult counsel regarding your claim since you indicated that you signed a release of your rights in return for receiving a severance benefit. If the release is valid you may not be able to make a claim for additional benefits. And as previously noted you would have to prove that the plan violated age discrimination rules or was less than the minimum value prescribed by the IRS. The fact that you received less than you could have recieved under the traditional plan is not in itself a sufficient basis for a claim.

[Guest dsyrett]

My guess is that irrespective of whether you signed a release, if you were paid less than was due to you under the terms of the plan you would have a claim.