Benefits & Executive Compensation News

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Lowe’s Settles Suit Challenging Workers’ Health Coverage Notices

Lowe’s Home Centers LLC settled a proposed class action by former employees who say the retail chain sent insufficient notices of their right to remain on the company’s health plan, according to court papers filed in the U.S. District Court for the Middle District of Florida.

Brookfield’s Terraform Buyout Too Cheap Due to Covid, Suit Says

Terraform Power Inc. was sued for records in Delaware by two pension funds claiming its proposed $1.58 billion take-private buyout by Brookfield Asset Management Inc. is drastically underpriced because it was negotiated by conflicted directors during the initial market panic over the coronavirus.

American Airlines Defeats Class Bid in Credit Union 401(k) Suit

A lawsuit challenging a credit union fund offered in American Airlines Inc.'s 401(k) plan won’t move forward as a class action, after a federal judge in the Northern District of Texas said he’s “satisfied” the case is being litigated “on behalf of” the plan itself.

Astellas, Aon Targeted in Would-be Class Suit Over 401(k) (1)

Eight former employees of drug maker Astellas US LLC claim the company’s 401(k) plan swapped out its investment funds in favor of expensive and inferior options that benefited the plan’s investment manager, according to a complaint filed in the U.S. District Court for the Northern District of Illinois.

Death by Paperwork? ESG Investing Probe Hints at Onerous Pile-On

A series of form letters sent to retirement plans hint at how the Labor Department may enforce a new requirement that sponsors justify socially conscious investments.

Fidelity to Pay $28.5 Million to Settle Class 401(k) Challenge

Fidelity Investments will pay $28.5 million to settle a class action targeting the affiliated investment funds in its employees’ 401(k) plan, the plan participants told a federal judge in Boston on Thursday.

Featured Topics

benefits administration

Lowe’s Settles Suit Challenging Workers’ Health Coverage Notices

Astellas, Aon Targeted in Would-be Class Suit Over 401(k) (1)

Death by Paperwork? ESG Investing Probe Hints at Onerous Pile-On

executive compensation

Towers Watson Merger Suit Revived by Divided Delaware High Court

Drahi, Altice Pay Board Sued Over Awards Worth $58 Million (1)

Companies Hurt by Covid Can Reduce 401(k) Account Contributions

pension and retirement plans

Brookfield’s Terraform Buyout Too Cheap Due to Covid, Suit Says

American Airlines Defeats Class Bid in Credit Union 401(k) Suit

Astellas, Aon Targeted in Would-be Class Suit Over 401(k) (1)

tax

Trump, Democrats Set Out Terms for Next Round of Virus Relief

Trump Administration Urges Court to Topple Affordable Care Act

Comcast Hit With Class Action Over Health Plan Notices

Case: Health Care & Benefits/Benefits Denial & Fiduciary Duties (8th Cir.)

The Eighth Circuit affirmed a federal district court in Missouri’s grant of summary judgment in favor of Spire Inc. Retirement Plans Committee in this ERISA action by a Laclede Gas employee who claims that the committee wrongfully denied his disability claim and breached its fiduciary duty by failing to conduct a full and fair review of his medical records when reconsidering his claim. The employee’s severe mental health conditions caused his resignation, and he received Social Security disability benefits but was denied Spire disability benefits. The Eighth Circuit found that the district court correctly decided that the committee followed and reasonably interpreted the plan’s terms when it found that the employee’s claim was untimely, and that the committee didn’t breach its fiduciary duty to review all of his medical records because they were not relevant to the timeliness inquiry. Dapron v. Spire Mo., 2020 BL 243901, 8th Cir., 19-2166, 7/1/20

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Case: Retirement Plans/Benefit Calculation (2d Cir.)

The Second Circuit affirmed a federal district court in New York’s grant of summary judgment in favor of a retired video and audio technician and operator in his ERISA action against Local 1430 International Brotherhood of Electrical Workers Pension Fund, arising from the fund’s partial denial of his pension benefits claim. The fund determined that the employee was only entitled to benefits for 16 years and seven months instead of 30 years, but the district court ruled that he was entitled to the maximum pension benefits based on 30 years of service credits, together with prejudgment interest and his reasonable attorneys’ fees and costs. The Second Circuit affirmed, because the district court didn’t err by finding the fund’s decision arbitrary and capricious due to the fact that there was no supervisor exclusion in the plan and the employee was plainly covered under the plan as an employee engaged in covered employment. The court dismissed the fund’s challenge to the attorneys’ fees decision for lack of appellate jurisdiction, because the amount of attorneys’ fees had not yet been set. Latronica v. Local 1430 International Brotherhood of Electrical Workers Pension Fund, 2020 BL 241614, 2d Cir., 19-2978-CV, 6/30/20

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Case: Retirement Plans/Benefit Calculation (R.I.)

The Rhode Island Supreme Court vacated and remanded rulings in favor of the City of Providence in this action by a retired firefighter and two retired police officers who contend that the city violated the terms of two 2004 trial court consent judgments. The retirees retired under collective bargaining agreements, and at the time of their retirement, a city ordinance mandated a five percent cost-of-living adjustment. The 2004 consent judgments were enacted after they reached settlements with the city based on its reduction of their cost-of-living increases after their retirements, and the judgments permanently enjoined the reduction of the retirees’ cost-of-living adjustments. In 2013, a city ordinance suspended cost-of-living adjustments for retirees. The retirees filed a miscellaneous petition in superior court seeking to enforce the consent judgments and to hold the city in contempt. The court ruled that, to the extent that the pension ordinance purports to nullify the consent judgments, it violated separation-of-powers principles embodied in the state constitution, and it vacated and remanded the trial court decisions in favor of the city. Quattrucci v. Lombardi, 2020 BL 241137, R.I., 2017-248-APPEAL, 6/30/20

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Case: Retirement Plans/Benefit Calculation (R.I.)

The Rhode Island Supreme Court affirmed in part and vacated in part a trial court’s ruling in favor of the City of Providence in a challenge to an ordinance suspending annual cost-of-living increases for police and firefighter pensions until the pension plan’s financial condition improves. The 2012 ordinance, which suspends annual pension increases until the plan reaches a 70% funding level, was challenged by a group of retirees. The state supreme court affirmed the entry of summary judgment in the city’s favor on claims under the Takings Clause and for promissory estoppel, but it found the ordinance unreasonable because it lacks a definitive deadline and could last beyond the lifetimes of many affected retiree. The retirees may move forward with constitutional claims under the Contracts Clause, instructing a lower court to determine how long pension increases can be suspended without offending the state or federal constitution. The court also blocked Providence from enforcing the pension ordinance against dozens of retirees who negotiated separate, judge-approved agreements with respect to their cost-of-living adjustments. Andrews v. Lombardi, 2020 BL 241187, R.I., 2017-262-APPEAL, 6/30/20

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