Credit: Simpson33 / Getty Images A federal appeals court Monday ruled that IBM did not discriminate against its employees on the basis of age, overturning an earlier verdict in that case.“All terms of IBM’s plan are age-neutral. Every covered employee receives the same 5 percent pay credit and the same interest credit per annum,” said the U.S. Court of Appeals for the Seventh Circuit, negating contentions by a class-action suit that IBM had favored younger employees over older when it switched pension plans in 1999.“The judgment of the district court is reversed, and the case is remanded with directions to enter judgment in IBM’s favor,” the decision said.The case centered on the difference between defined-benefit and cash-balance pension plans. A defined-benefit pension means that the employee will receive a fixed amount each month from the employer after retirement. Cash-balance plans give employees the same interest rate, but not necessarily the same benefit. Because employees who join the company at a younger age receive more compounded interest, the plaintiffs in the case argued that it discriminated against older workers and those who began their pension under the earlier plan.More than 1,000 U.S. companies now offer cash-balance pension plans, according to a statement by Covington and Burling, IBM’s attorneys in the appeal. Because the lower court’s ruling had said that cash-balance plans were unlawful, the ruling could have a significant impact on the implementation of pension plans in the United States now that the decision is overturned. By Steven Schwankert, IDG News Service (Beijing Bureau)Related Links: Microsoft, IBM, Others Team Up on SML IBM Finally Unveils Opteron BladesCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by Palo Alto Networks Operational technology systems require a robust Zero Trust strategy in 2024 Zero Trust provides a foundation for creating a stronger security posture in 2024. By Navneet Singh, vice president of marketing, network security, Palo Alto Networks Dec 05, 2023 6 mins Security brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe