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A $59 million settlement has been reached to end claims that Raytheon Co. used outdated mortality rates to calculate pensions and shortchange retirees.
Lead plaintiff, Johnny Cruz, claimed in a class action lawsuit filed 2019 that defense contractor Raytheon violated federal law by using old data to formulate benefits packages for retirement plan participants and their beneficiaries. Cruz alleged that the plan administrators’ use of outdated mortality rates violated the Employee Retirement Income Security Act (ERISA).
Specifically, Cruz contended that Raytheon retirees who received pensions as a joint or survivor annuity were provided a benefit based on outdated data and the company shortchanged its retirement plan beneficiaries. Allegedly, ERISA requires that these pension benefits provided to survivors should be at least the “actuarial equivalent” of the amount that would have been provided to single retiree. A number of other companies have been hit with similar allegations, according to Law360.
“The proposed Settlement is an excellent result for the Class,” states the motion for preliminary approval of the class action settlement. “It will increase Class Members’ monthly pension benefits by 40 percent of their damages.”
Class Members include those who participated in a Raytheon retirement plan who received a joint survivor annuity starting from June 27, 2013, along with their beneficiaries and/or surviving spouses. Under the terms of the settlement, Class Members will receive increased benefit payments. The amount of the increase will depend on the benefits each Class Member currently receives and the monthly benefit shortfall they experienced, along with total attorney fees, costs, and expenses taken out of the settlement fund.
“The groundbreaking settlement is outstanding in light of the substantial litigation risks in the case,” notes the motion. “Plaintiff’s legal theory is both cutting-edge and complex. It has not been litigated through trial in any case and there are no appellate decisions on point.”
If the proposed settlement is preliminarily approved by the court, Class Members will be notified.
Are you a Class Member in the Raytheon ERISA class action lawsuit? We want to hear from you! Tell us about your experience in the comment section below.
Lead plaintiff, Johnny Cruz, and the proposed Class Members are represented by Douglas P. Needham, Robert A. Izard and Mark P. Kindall of Izard Kindall & Raabe LLP and Gregory Y. Porter, Mark G. Boyko and Alexandra L. Serber of Bailey & Glasser LLP.
The Raytheon ERISA Class Action Lawsuit is Cruz v. Raytheon Co. et al., Case No. 1:19-cv-11425, in the U.S. District Court of Massachusetts.
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3 thoughts onRaytheon Retirees Garner $59M Settlement Over Outdated Mortality Rates
I wanted to contact Johnny Cruz, however the lawyer rep the case refused to disclose his contact address. I am a recipient of the Class Action Lawsuit for which if it wasn’t for Johnny I would NOT have benefitted. If anyone knows please contact me.
I also asked the rep lawyer about the EPTO of which he denied any knowledge. The lawyer mentioned that EPTO expired and was a candidate of the statute of limitations? Thousands of hours disappear / placed into STD.
Extended Paid Time Off was a benefit started at Hughes Aircraft gifting employees of un-used sick leave. It was placed in an account and accrued after GM and Raytheon bought the company.
Please add me to the list
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