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Delta retirement plans class action lawsuit overview:
- Who: Marsha R. DuVaney filed a class action lawsuit against Delta Airlines, Inc.
- Why: DuVaney claims Delta used an outdated conversion system to short the pension plans for thousands of retired Northwest Airlines workers who elected to receive joint survivor annuities.
- Where: The class action lawsuit was filed in Nevada federal court.
Delta Airlines undercuts the retirement benefits of Northwest Airlines workers who elect to have their spouses receive pensions as well, a new class action lawsuit alleges.
Plaintiff Marsh R. DuVaney claims Delta miscalculates the monthly pension amounts for retired workers of Northwest Airlines, which Delta absorbed in a merger back in 2008, who choose joint survivor annuity plans.
DuVaney wants to represent a class of thousands of retired Northwest employees who claim they are receiving less money for their pensions each month due to Delta’s decision to “improperly reduce annuity benefits.”
DuVaney says the 50% joint survivor annuity retirement plan she took in January 2020, after working for Northwest for around 33 years, used fixed conversion factors to calculate her benefits, instead of the 2020 Treasury Assumptions.
“By using these artificially low conversion factors instead of reasonable, current actuarial assumptions like the applicable Treasury Assumptions, Defendants reduced the present value of Plaintiff’s benefits when she retired by $12,605,” the class action lawsuit states.
Plaintiff argues conversion factors used to calculate pension plans were outdated
Companies use actuaries to determine a variety of factors when calculating benefit changes from single-life annuity to JSA retirement plans, such as what inflation will mean for future monthly benefits and when spouses are likely to die.
DuVaney argues the conversion factors used to calculate her JSA and others are outdated, while speculating they were “set decades ago” when mortality rates were higher.
“Defendants failed to update the conversion factors it used to calculate JSA benefits to reflect its own ‘best estimates’ of mortality and interest rates,” the lawsuit states.
DuVaney claims she could have taken a separate service level agreement which would have paid her more money and is now receiving less each month than she would if Delta had used conversion factors “based on current, reasonable actuarial assumptions.”
“Discovery will likely show that Defendants’ use of unreasonable conversion factors deprived retirees and their spouses of millions of dollars,” the class action lawsuit states.
DuVaney claims Delta has committed a breach of fiduciary duty and is requesting the airline be required to update its conversion policies, recalculate the benefits it has already paid and “pay all benefits improperly withheld” to herself and all class members.
Last month, a California judge approved some of the claims in a class action lawsuit lobbied against Delta that alleges the airline dumped 15,000 gallons of jet fuel on a Los Angeles residence.
Have you had your pension miscalculated by Delta? Let us know in the comments!
The plaintiffs are represented by Don Springmeyer, Michael J. Gayan and Alysa M. Grimes of Kemp Jones LLP; Robert A. Izard, Douglas P. Needham and Oren Faircloth of Izard Kindall & Raabe; and Gregory Y. Porter and Mark G. Boyko of Bailey & Glasser LLP.
The Delta retirement plans class action lawsuit is DuVaney, et al. v. Delta Airlines Inc., et al., Case No. 2:21-cv-02186, in the U.S. District Court for the District of Nevada.
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5 thoughts onDelta class action claims airline shorts pensions of Northwest Airlines workers who choose joint survivor annuities plans
I’m a flight attendant to work for Northwest Airlines and when Delta acquisitioned Northwest I continued working for Delta until 2020, when we lied to about covid and really early forced into retirement. I requested a pension packet of information. I continue to call and email requesting this packet. After a year of not receiving any response I contacted an attorney firm in California which responded with information to assist me with the free pension assistant hotline. I was then led to the American academy of actuaries that would try to assist me. Because I knew the amount that Delta had claimed was my retirement pension benefit was incorrect but I had no information from the company as to how they came to these accurate hours even though vested service was 30 years total. With Northwest Airlines it was 15 and a half years my pension was going to be $459 a month. it is now 2022 and I just received forms to file for my pension and I had to continually request I wanted the pension booklet. What I got was an old outdated Northwest Airlines railroad act Union contract and nothing from Delta retirement pension explanation of how they came to the 20.80 benefit equivalent hours for pension payment. Do I need assistance yes does every Northwest Airlines flight attendant need assistance with this yes. Hats off to Miss DeVancy for hiring this law firm and this firm seeing the injustice here. I just pray we are able to have a breakthrough and a victory in this case. I would like my name put on this lawsuit.Please contact me.
You were not forced into retirement. Your NWA pension was frozen in 2005 at $65 yr of service. Not hard to figure out. And what are you speaking of, a 20.80 benefit?
I am a former Pan Am flight attendant… There are 5 major work groups that comprise DAL workers….DAL, NorthEast, Western, NWA…PanAm— and any carriers they absorbed.
All had different pensions/rules/etc…How these are all handled needs to be reviewed…
I worked for Delta Airlines for over 14yrs and I know that my pension has been short changed
I work for DAL now… and wondering what’s going to be happening to me, as well… when I retire… can we chat? I’d like to hear your story/experience and understand completely how you have been affected.