TRW Settles Retirees’ Pension Benefit Lawsuits

TRW Inc. agreed to pay $48.5 million to settle retirees’ lawsuits alleging the second-largest maker of automobile air bags mishandled pension payments to more than 5,500 former employees. Under the agreement, retired TRW workers will drop claims that the industrial parts maker illegally miscalculated lump-sum payments for 10 years starting in 1986. The agreement was to be presented Tuesday to U.S. District Judge Ann Aldrich in Cleveland, said Robert Gary, an attorney for retired TRW workers. TRW executives said they continue to maintain the calculated pension payments properly. Aldrich ruled earlier that TRW must pay interest on the disputed pension payments at rates matching those on U.S. Treasury bills or the rate of return realized by TRW’s pension fund, whichever is higher. TRW’s shares fell 42 cents to close at $38.04 on the NYSE.

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