07.14.26

AT&T Seeks to Settle Pension Class-Action Lawsuit for $184M

by: James Van Bramer

AT&T agreed to a proposed $184.1 million settlement of an ERISA class action alleging that the company used outdated actuarial assumptions to calculate joint-and-survivor pension benefits. The agreement would provide more than $149 million in value to current and future retirees and require AT&T to update its annuity conversion factors and review them at least once every 10 years. The company would separately pay up to $35 million in attorneys’ fees and litigation costs. The settlement, which still requires court approval, highlights the litigation risk associated with pension calculations that rely on older mortality assumptions.

Read the full article on PlanAdviser.com