Friday, July 16, 2010

Supreme Court not willing to help in disputes where companies cut pensions to workers with discontinuous service

Back in April, 2010 the Supreme Court, in a case Conkright v. Frommert  (link)  determined that judges must defer to calculations made by plan administrators, even if administrators may have erred in making calculations.

There is a case where a Xerox employee had been shown a worksheet predicting a pension of about $2480 a month, but had been warned it could be inaccurate if his service had not been continuous. He had been laid off a short time in the late 1980s during the Reagan-era takeover and merger mania. As a result, the resulting pension, when actually delivered, had been only a little more than $5 a month!

The AARP Bulletin had a story May 3, 2010 by Holly Yeager, “Supreme Challenge to Pension Payouts: The High Court sides with companies over workers and retirees”, link here.

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