Cash balance plans do not violate the rule against age-based reductions in the rate of benefit accrual under the Employment Retirement Income Security Act, the 2nd U.S. Circuit Court of Appeals has ruled.

Resolving an issue that had generated uncertainty among its district court judges, the 2nd Circuit clarified the law under 29 U.S.C. §204(b)(1)(H)(i) in two companion cases from the Southern District of New York.