Whipsaw Calculation Case Deemed Class Action
February 17, 2009 (PLANSPONSOR.com) - A federal
judge in Wisconsin has declared as a class action a lawsuit
by two cash balance participants over the failure to use a
whipsaw calculation in determining pre-retirement lump-sum
distributions.
U.S. District
Judge Barbara B. Crabb of the U.S. District Court for
the Western District of Wisconsin turned aside arguments by
the Alliant Energy Cash Balance Pension Plan that the
claims by the two named plaintiffs were not typical of
other workers because they agreed not to sue over their
pension benefits as part of their severance
agreements.
Crabb also rejected the plan's contention the
two plaintiffs could not represent a class of workers
because they did not sufficiently understand the
substance of their legal claims. Crabb said their
legal counsel was sufficiently versed to represent the
class.
Lawyers for the plan also argued the proposed
participant class would include participants who received
lump-sum payouts more than six years before the date the
lawsuit was filed - after the time limit for filing legal
claims. Crabb said the fact that some claims might be too
late did not change her ruling that the plaintiffs
deserved the class certification.
Crabb appointed Lawrence G. Ruppert to represent
class members whose lump-sum distributions were
calculated on or after February 29, 2002, and Thomas A.
Larson to represent class members whose distributions
were calculated between January 1, 1998, and February 28,
2002.
Ruppert and Larson filed a motion for class
certification to include any plan participant who was
paid pension benefits without a whipsaw
calculation.
The case is
Ruppert v. Alliant Energy Cash Balance Pension
Plan,
W.D. Wash., No. 08-cv-127-bbc.
Fred Schneyer
editors@plansponsor.com