Daily Labor Report®

PepsiCo Is First Company to Beat Suit Over Stale Pension Data

Sept. 25, 2019, 4:46 PM

PepsiCo Inc. defeated a proposed class action claiming the company shortchanges the pension benefits of married couples by using unreasonable interest rates and mortality assumptions, according to a Sept. 25 decision from the Southern District of New York.

Pepsi retiree William DuBuske can’t rely on an Employee Retirement Income Security Act provision protecting accrued pension benefits from forfeiture, because he hasn’t yet reached normal retirement age under the Pepsi plan, Judge Vincent L. Briccetti held.

ERISA’s anti-forfeiture provision only protects pension benefits from forfeiture after a participant has reached normal retirement age, Briccetti said.

DuBuske’s claim of fiduciary breach under...

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