Employer or Government Benefits
Many state and local governments promised their employees pension and retiree health benefits based on years of service but did not set aside sufficient funds to pay them.
Problems created by underfunding have increased due to an unstable stock market. As a result, many state and local governments are under financial and political pressure to reduce or eliminate promised benefits.
Although many employees kept their end of the bargain by working for decades, they may now face the prospect of reduced or eliminated pension and health benefits when they retire.
In recent years, some public employers raised the amount of the contributions retirees have to make, or imposed higher deductibles, or instituted a cap on benefits. Even worse, some eliminated retiree health coverage altogether. These changes may violate union contracts, state laws, or Constitutional provisions that prevent governmental entities from interfering with contracts and reducing vested rights.
FDPK’s class action team is experienced in representing public-sector employees and retirees whose retirement benefits have been cut or eliminated and would be pleased to discuss questions you may have about your employer or government benefits. Contact Partner Joel Hurt if you would like to discuss your pension or retiree benefits.