About four years ago a federal district court judge had ordered TRW to recalculate 10 years of lump-sum payments to the retirees. TRW appealed, but the ruling was affirmed last December.
Attorneys for the retirees noted that both sides had been trying to figure a settlement amount based on a formula suggested by the 6th US Circuit Court of Appeals. While TRW had reportedly figured a settlement of about $40 million, the retirees were seeking about $50 million.
The suit had been brought on behalf of about 5,500 retirees who had retired between October 23, 1986, and July 1, 1996. Most of the retirees worked in TRW’s West Coast operations, according to the Associated Press.
TRW continues to believe that it calculated the pensions properly, TRW spokesman Michael Jablonski told the AP.
“We believe it is in the best interests of the company and of the TRW retirees to bring the litigation to a conclusion by entering into a settlement agreement,’ the company said in a written statement.
Attorneys discussed the proposed settlement with US District Judge Ann Aldrich, who issued the original ruling, on Tuesday. The parties will be in court May 29 to ask for preliminary approval.