Learn whether your pension claim might have class action potential, and why this is often the only vehicle for obtaining pension justice. See Story for details.
The primary way our pension lawyers help people recover their pension benefits is through the class action device. A “class action” is a lawsuit brought on behalf of many individuals, all of whom have been wronged in the same or similar manner. The “class” is that group of similarly--situated individuals.
A “class claim” for pension benefits is a claim brought on behalf of a group of similarly-situated individuals (the “class”) who have received a pension amount that is less than the amount to which they are entitled. Typically, there must be at least 40 such similarly-situated individuals to bring the pension claim as a “class claim” or “class action.”
The main advantage to bringing a pension claim as a class claim is that individual pension claims are usually too small for an attorney to accept on a contingency basis, or for the individual to pay hourly attorney fees; whereas, if the pension claim can be brought as a class action, the attorney can accept representation on a contingency basis, meaning the attorney will get paid if any only if he/she recovers additional pension benefits for the class members. In the mean time, the class member pays nothing. Our pension lawyers bring class claims for pension benefits so they can help many individuals with the same pension claim, rather than just a few individuals with a pension claim.
If you believe your pension claim has class action potential, as opposed to only individual potential (see Q&A section below), call our senior pension specialist, pension lawyer Eva T. Cantarella, at 248-335-5000, or send her an email at [email protected] or [email protected]. There is no charge for the consult.
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About Hertz Schram PC and Its Pension Justice Department
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Hertz Schram PC is one of the leading law firms in the country helping participants and beneficiaries recover the pension benefits to which they are legally entitled. In just the past 15 years, our pension lawyers have recovered over $120 million in pension benefits for over 20,000 pension plan participants and their beneficiaries.
The pension activities of our lead pension attorney, Eva Cantarella, have been reported in numerous publications and on many websites, including the Wall Street Journal. Ms. Cantarella, has also testified before the Internal Revenue Service and United States Department of Treasury on regulations governing tax-qualified pension plans.
In short, we have actively sought to protect the interests of pension plan participants and their beneficiaries through not only litigation, but also through the regulatory process.
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Q&As
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Q. What are some examples of pension claims that very often DO have class action potential?
A. 1. The plan used the wrong formula to compute the pension.
2. The plan administrator reduced benefits for a whole group of participants, claiming it was permitted to do so under the terms of the plan or an existing statute. Neither might be true.
3. The participant elects a lump sum distribution of his/her pension, but when the participant receives the lump sum it is much smaller than the amount originally estimated by the plan administrator. The plan administrator might have used an unlawfully high interest discount rate or the wrong mortality table, or both, or there could be some other calculation error.
4. A “critically underfunded” multiemployer pension plan* cuts disability benefits provided under the plan. While “critically underfunded” multiemployer pension plans may lawfully reduce some benefits, they may not lawfully reduce disability benefits that are in pay status.
* A multiemployer pension plan is a pension plan to which more than one employer contributes [usually dozens or hundreds of employers, sometimes over a thousand employers] and is maintained pursuant to a collective bargaining agreement. In general, such plans are deemed to be “critically underfunded” or in“critical status” if they have less than 65% of the funds necessary to pay all current and future benefit obligations.
5. The participant receives a lump sum distribution of his/her entire pension benefit and the amount seems extremely small (too small) in light of the participant’s lengthy service with the employer. It just might be, although the reasons for any calculation error can vary greatly.
6. The plan administrator used the wrong vesting schedule to determine whether a pension was owed or the amount of the pension.
7. A plant or facility was closed resulting in many employees losing not only their jobs, but their participation in the pension plan and pension benefits.
Q. What are some examples of pension claims that generally do NOT have class action potential because they apply only to the individual rather than a group of similarly-situated individuals?
A. 1. The plan administrator used a wrong age FOR ME when it computed my pension benefit.
2. The plan administrator failed to use all of MY service when it computed my pension benefit.
3. The plan administrator mistakenly paid part of my pension to my ex-wife.
4. The plan administrator claims to have mistakenly overpaid my pension benefits and now wants the difference back.
Caveat: If you learn that the plan administrator is making this same claim as to many similarly-situated individuals, there may be a class claim, although this will generally not be the case.
Q. What documents will a pension lawyer need to see in order to evaluate whether a pension claim has class action potential.
A. At a minimum, (i) the full formal plan document in effect when the participant separated from service, (ii) the summary plan description for such plan, and (iii) any documents exchanged between the participant and the plan administrator pertaining to the claim. Other documents might also be needed. Our pension lawyers can help you obtain all necessary documents.
Everyone should be able to retire with dignity; our goal is to help as many people as possible do just that. While we cannot solve everyone’s retirement problems, we can help you recover your pension benefits. Our pension lawyers do this primarily through the class action device. [See our Story], but also offer a no-charge telephone consult to pension plan participants (or their beneficiaries) with pension questions. Very often, we can resolve the pension issue via the telephone consult.
Posts on this Page are by pension attorney Eva Cantarella and are intended to educate the public on pension issues arising under non-governmental pension plans through Q&As, selected case reviews, and news bites. For individualized pension concerns, send Eva a Message or contact her at 248-335-5000 or [email protected] or [email protected]. Oh, and please don’t forget to Share this Page or Posts on this Page with your Friends!
