Workers File Pension Suit against Boeing
Plaintiffs Larry Wheeler, David and Maral Keeton and Vincent Parisi filed the suit seeking class-action status against the Pension Value Plan for Employees of The Boeing Company, according to a Madison St. Clair (Illinois) Record news report. The case was filed under the Employment Retirement Income Security Act (ERISA) in the US District Court for the Southern District of Illinois claiming that the plan used an illegal method of benefits calculation.
According to the suit, the plaintiffs’ employment
was transferred to Boeing on August 1, 1997, after the
merger. They claim their retirement benefits are less
than the accrued benefit to which they are legally
entitled because the plan didn’t properly apply accrual
and vesting rules imposed by ERISA.
The plaintiffs charge that the plan violates ERISA’s
anti-back loading provisions because it makes benefits
accrue very slowly over time until the participants near
the normal retirement age so that a participant’s vested
pension rights have very little value until they complete
a very long period of service, according to the news
report.
“ERISA requires that a defined benefit plan must allow a
participant to accrue, i.e. earn benefits no less that
ratably over a working career so as to prevent employers
from using creative plan designs to avoid the protection
afforded by ERISA’s vesting rules,” the complaint
charged.