Mercer Select US - Pension plans can eliminate retiree death benefits, appellate courts rule

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Pension plans can eliminate retiree death benefits, appellate courts rule

Pension plan sponsors considering eliminating ancillary retiree death benefits to save costs or ease compliance with accelerated distribution restrictions can take comfort from two federal appeals court decisions. In cases involving similar facts, the courts upheld pension plan amendments removing lump sum retiree death benefits, finding the benefits were not protected by ERISA's anti-cutback rules or contractually vested. (Select News, 23 Jul 2009)

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