Raytheon Agrees to Settle ERISA Mortality Table Litigation for $59 Million
Suits alleging that defined benefit plan sponsors failed to update mortality tables used to determine whether alternative plan benefit options are the “actuarial equivalent” of the single life benefit have been proceeding rapidly. Just days ago, one of the targets of these actuarial equivalence lawsuits agreed to settle the claims for $59 million, which the class representatives indicated was 40% of the classes’ total potential damages. Because the settlement involves a request to certify a class, it must ultimately be approved by the Court.
Thus far, although these actuarial equivalence claims have survived early procedural motions to dismiss the claim for failure to state an actionable theory of recovery, they have largely faltered on attempt to certify a class. But the theories of recovery will no doubt continue to morph as plaintiffs’ counsel try to adjust to the newest court decision.