Comments on: Decision in Cash Balance Conversion Case May Have Missed the Boat http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/ Published by Suzanne L. Wynn, Esq., LLM Tax. of Erisafile / Qualified Pension Consulting Inc. Sat, 05 Nov 2011 17:33:01 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Ken http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-119 Ken Thu, 20 Mar 2008 16:20:20 +0000 http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-119 SPX closed their pension plan to new hires in 2001 in favor of only the 401K. Employees as of 2001 continue with the plan. I am aware of no other suits yet. SPX closed their pension plan to new hires in 2001 in favor of only the 401K. Employees as of 2001 continue with the plan. I am aware of no other suits yet.

]]> By: John http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-118 John Thu, 21 Feb 2008 17:48:03 +0000 http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-118 What happened to the employees that are still with SPX who had done over 10 years of service with GS. Do they still have a "pension plan" ? Was it dissolved? Have there been any more suits against SPX around this issue? What happened to the employees that are still with SPX who had done over 10 years of service with GS. Do they still have a “pension plan” ? Was it dissolved? Have there been any more suits against SPX around this issue?

]]> By: Ken http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-117 Ken Thu, 03 Jan 2008 15:06:40 +0000 http://qualifiedpensionconsulting.com/ppablog/2008/01/02/decision-in-cash-balance-conversion-case-may-have-missed-the-boat/#comment-117 There are many facts being confused here. First, General Signal purchased SPX and then changed its name to SPX. The General Signal (GSX) Plan was merged into the SPX plan with $200M in excess funding removed after the cash balance conversion. (READ BIG CEO BONUS) The GSX employees who were 55 as of 1/1/1999 had the transition benefit included in their opening account balance. Those 45 but not yet 55 did not have the transition benefit included in the opening balance. There was no separate third plan. As explained in SPX literature, “there was a group of associates – those within 10 or fewer years of early retirement – who initially didn’t fare as well. To ensure this group also receives comparable benefits to the former plan, SPX established a transition benefit.” Gillis appeared to want his cake and eat it too. After receiving the transition benefit in the opening account balance, he again wanted the transition benefit calculated at age 59. I have many complaints about the GSX/SPX conversion but Gillis should consider himself really lucky. I was 49 at the time of the conversion with 24 years of service. I needed to work another 6 years to receive the transition pension benefit. Unfortunately, in 2003 and at age 53, my unit of SPX was sold as part of corporate restructuring and I was told I could not qualify for the transition benefit as the new owners would have no pension plan. This loss amounts to a $105,000 (42%) reduction in the age 55 benefit. I have appealed to the plan and pursued every possible alternative to no avail. We were given no choice in the conversion and not provided complete information on the conversion for nine months after the conversion effective date. Many of our opening balances were, even then, calculated incorrectly. The plan had a 30% reduction in members over 2003/2004 but did not declare a partial termination occurred. Several employees, just days short of the five year cliff vesting, were told they would get nothing. Upon appeal, the Plan ruled they would only vest if there was a partial termination but have received nothing further. The IRS/PPA of 06 declared conversions after June 2005 must include the prior accrued benefit PLUS the future accrued benefit to address wear away. The SPX Plan provides a 'greater of' benefit provision for either the before benefit or the new converted cash balance benefit but NO combination. My accrued benefit on January 1, 1999 is now greater than the cash balance benefit, in effect showing the wear away has been the entire 4 years, 10 months and 23 days I worked under the SPX Cash Balance Pension formula. No one seems to care about those prior conversions done like SPX, not even the courts. My calculations in 1999 showed the transition benefit would make me whole with the old plan formula at age 55. I now know, I would have been better off to leave than to believe the SPX lies that they cared about their older employees “who initially didn’t fare as well”. Gillis – you are very lucky! There are many facts being confused here. First, General Signal purchased SPX and then changed its name to SPX. The General Signal (GSX) Plan was merged into the SPX plan with $200M in excess funding removed after the cash balance conversion. (READ BIG CEO BONUS) The GSX employees who were 55 as of 1/1/1999 had the transition benefit included in their opening account balance. Those 45 but not yet 55 did not have the transition benefit included in the opening balance. There was no separate third plan. As explained in SPX literature, “there was a group of associates – those within 10 or fewer years of early retirement – who initially didn’t fare as well. To ensure this group also receives comparable benefits to the former plan, SPX established a transition benefit.” Gillis appeared to want his cake and eat it too. After receiving the transition benefit in the opening account balance, he again wanted the transition benefit calculated at age 59.

I have many complaints about the GSX/SPX conversion but Gillis should consider himself really lucky. I was 49 at the time of the conversion with 24 years of service. I needed to work another 6 years to receive the transition pension benefit. Unfortunately, in 2003 and at age 53, my unit of SPX was sold as part of corporate restructuring and I was told I could not qualify for the transition benefit as the new owners would have no pension plan. This loss amounts to a $105,000 (42%) reduction in the age 55 benefit. I have appealed to the plan and pursued every possible alternative to no avail. We were given no choice in the conversion and not provided complete information on the conversion for nine months after the conversion effective date. Many of our opening balances were, even then, calculated incorrectly.

The plan had a 30% reduction in members over 2003/2004 but did not declare a partial termination occurred. Several employees, just days short of the five year cliff vesting, were told they would get nothing. Upon appeal, the Plan ruled they would only vest if there was a partial termination but have received nothing further.

The IRS/PPA of 06 declared conversions after June 2005 must include the prior accrued benefit PLUS the future accrued benefit to address wear away. The SPX Plan provides a ‘greater of’ benefit provision for either the before benefit or the new converted cash balance benefit but NO combination. My accrued benefit on January 1, 1999 is now greater than the cash balance benefit, in effect showing the wear away has been the entire 4 years, 10 months and 23 days I worked under the SPX Cash Balance Pension formula. No one seems to care about those prior conversions done like SPX, not even the courts.

My calculations in 1999 showed the transition benefit would make me whole with the old plan formula at age 55. I now know, I would have been better off to leave than to believe the SPX lies that they cared about their older employees “who initially didn’t fare as well”.

Gillis – you are very lucky!

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