If a worker has worked for his employer for at least five years, the law implements his defined benefit pension plan. In other words, they will have become a right, in particular a right to the “normal superannuation,” 29.C. . If the employee leaves the company before reaching the normal retirement age, his “normal pension”, i.e. his right to the pension, is the benefit he has “acquired” until the date of his retirement. Id. 1002 (23) (A). In the case of a defined contribution plan (whose benefits are immediately used), this benefit is only the amount of his pension account when he leaves the company`s job. Id. 1002 (23) (B).
In the case of a defined benefit plan entitled to a pension equal to a percentage of his salary on the basis of his years of service, the right to a pension is from age and salary from age at age. But what about a cash plan? Xerox`s cash plan does not give the outgoing employee the balance in his (hypothetical) account but the balance if he receives the “distribution” of his pension benefit. If it defers distribution to the normal retirement age of 65, the cash balance between the termination of Xerox`s employment and the age of 65 will increase from the T-Bill rate by one year plus 1%. The guaranteed investment agreement does not allow Wells Fargo to terminate the contract before the due date. Xerox also complains about the discount rate by which the district judge calculates the lump sums to which class members are entitled. We have said that the discount rate that applies to the plans for this vintage is imposed by the PBGC, but in fact there are two advantages, the highest of which, and therefore the one that Xerox wants to use (because the higher the discount rate, the less the lump sum of the current value) is applicable to the benefits of free movement of $25,000 or more. 29 U.S.C No. 1053 (e) (2) (1993). (The idea behind this distinction is probably that the older the worker` age, the less necessary it is to protect the worker from insufficient lump sum distribution.) However, keep in mind that the worker has a choice between the defined benefit benefit benefit to which the Xerox plan entitles him and the defined benefit benefit (cash assets). Suppose the first is $50,000 for a given employee and the second is $60,000, the second is $60,000, the second is $50,000. Xerox argues that, since this amount exceeds $25,000, the higher discount rate is applicable.
However, the judge found that the incremental value of his defined benefit benefit is only $10,000 and that the lower discount rate should therefore be used, since the worker would be entitled to $US 50,000 (i.e. the value of his contributory benefit). In 2015 and 2014, the plan invested in a master trust agreement consisting of common shares and investment funds. The trust consists exclusively of plans. Investment information regarding the Master Trust agreement in 2015 and 2014 is as follows: Effective August 1, 2015, no new investment has been authorized in the Xerox Stock fund.