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<\/figure>\n<\/div>\n\n\nIn Walton, Don Walton worked for Alcoa Inc. from 1985 until 2015 when he retired with thirty years of service. On December 31, 2012, Walton received a $49,000 lump sum from Alcoa. In a written communication to Walton, Alcoa explained that the lump sum was a \u201cbonus\u201d given to \u201ccompensate\u201d him for the fact that he had served as an Interim Plant Manager in 2012, but could not receive supplemental pay while he was employed in that capacity. Under ERISA [the Employee Retirement Income Security Act, which governs most private-sector employee benefit plans], pension plans must be administered in accordance with their terms. Although this rule is well-known by plan administrators, disputes arise when parties disagree about the meaning of the plan\u2019s terms. Nonetheless, if the terms of the plan unambiguously favor your pension claim, do what the participant did in Walton v. Pension Plan, No. 2:16-cv-00397, 2017 U.S. Dist. LEXIS 80440 (W.D. Pa. May 24, 2017): FIGHT…<\/p>\n
When Walton retired in 2015, Alcoa omitted the $49,000 lump sum payment from the calculation of his \u201cfinal average compensation,\u201d which reduced his monthly pension. Walton asked Alcoa to re-compute his pension using the lump sum, but Alcoa refused; so Walton sued.
In defense of Walton\u2019s claim, Alcoa argued that the $49,000 lump sum was \u201csupplemental pay,\u201d which was expressly excluded under the plan\u2019s definition of \u201cCompensation.\u201d The Magistrate Judge disagreed because Alcoa had expressly advised Walton that he could not receive supplemental pay as an Interim Plant Manager and that it had given him the lump sum in consideration of that fact.
The Magistrate Judge also found that Alcoa\u2019s pension plan explicitly included \u201cbonuses\u201d in its definition of \u201cCompensation,\u201d and that Alcoa had expressly deemed the 2012 lump sum to be a \u201cbonus\u201d in its written communication to Walton. Therefore, Walton was entitled to have his pension benefits recalculated using the $49,000 lump sum in his \u201cfinal average compensation,\u201d and to receive the pension amounts wrongfully withheld plus reasonable costs and attorneys\u2019 fees Walton incurred in prosecuting his claim.
The takeaway from this case is that if the terms of your pension plan unambiguously favor your pension claim and you are unable to resolve the dispute with the plan administrator, sue. It may just net you additional pension benefits and possibly also an award of your costs and attorneys\u2019 fees.
To read more posts about pension issues, please go to my Facebook Page www.facebook.com\/PensionJustice4You<\/a> and if you like it, share it with your Friends!<\/p>\n","protected":false},"excerpt":{"rendered":"