Ex-Polaroid Workers Claim Illegal Benefits Cutoff

July 9, 2003 (PLANSPONSOR.com) - Five former Polaroid employees have sued the company, claiming that Polaroid violated ERISA by severing their long-term disability benefits last year.

The suit, filed Monday in Boston federal court, claims Polaroid made the illegal benefits cutoff after the July 2002 sale of the company to One Equity Partners, a unit of Chicago-based Bank One Corp., according to the Associated Press.

The company sent a letter telling about 180 employees receiving long-term disability and 70 surviving spouses, that they would no longer be considered employees. The plaintiffs include a man with incurable skin cancer and a woman with Alzheimer’s. They have asked the court to restore their benefits, reimburse insurance premiums, and pay damages.