OTHER NEWS - Dec. 28, 1995
Times Staff and Wire Reports
Pension Case Settled: The Pension Benefit Guaranty Corp. said it has settled a 1988 class-action lawsuit against 11,000 underfunded pension plans, most representing small companies. The settlement is subject to court approval. About 40,000 workers who were denied benefits after their plans collapsed will receive a share of about $100 million. The case covers a period from 1976 through ‘81, when the plans were terminated, leaving workers without benefits. Affected workers with at least 10 years of service will receive lump-sum payments equal to about 80% of what they were due when their pension fund collapsed. Smaller amounts will go to employees with five to 10 years of service.
