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Retiree Pension Benefits

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Halloween Treat for Norton Healthcare Retirees in Louisville

 

On October 31, 2013, FDPK lawyers Bill Payne, Ellen Doyle and Joel Hurt, working with Michael Grabhorn of Grabhorn Law Office, won a retiree pension benefits judgment in a class action brought against Norton Healthcare, Inc.

 
This retiree pension benefits case is pending in federal court in Louisville, Kentucky.
 
The retirees claimed that Norton miscalculated retirees’ pension benefits in two ways:
 

  1. (1) by failing to follow the plan language which in 2004 was amended to remove any actuarial reductions for payment of early retirement benefits; and

 

    1. (2) by failing to include in the retirees’ lump sum benefits a cost-of-living adjustment (COLA) that was provided to other retirees who chose to receive monthly payments.
    2.  

    The Court agreed with the retirees and ordered that the terms of the pension plan did not allow a retiree’s monthly benefit or lump sum payment to be reduced for early retirement.
     
    The Court also ruled that the pension plan and federal law required that a retiree’s lump sum payment must be the “actuarial equivalent” of his or her monthly payment, and therefore the COLA (cost-of-living adjustment) paid to those that receive monthly payments must be included in the lump sum payments paid to class members.
     
    The Court ordered Norton to recalculate the retirees’ benefits within 45 days.  The relief may be delayed if Norton appeals the Court’s decision.
     

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Feinstein Doyle Payne & Kravec, LLC

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Phone: +1 (412) 281-8400

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