Some Cash-Balance Pension Plans Leave Workers Underpaid Wall Street Journal (06/05/02) Vol. 36, No. 22 p.B5; Tejada, Carlos
A recent report by the Department of Labor found that some cash-balance pension plans cheated workers, but neither Labor nor the Internal Revenue Service and Treasury Department can decide who is responsible. The report found that 20 percent of audited firms underpaid workers by not following notice 96-8, which sets interest rates used to calculate the amount workers receive. Treasury officials say the notice is only a guide, while critics note that court cases have established the notice as the standard.