Deal Ends Dispute Over Pension Cuts For Carpenters

DETROIT (AP) — Lawyers say more than 300 people are covered by a settlement in a lawsuit over reduced benefits for disabled carpenters.

In 2013, the struggling Detroit-area pension fund changed the plan to reduce benefits for people who were receiving them. Thomas Underwood sued, saying the changes violated federal law and the rules of the fund.

Under the settlement, recipients will recover 95 percent of past and future payments. Attorney Eva Cantarella said Wednesday the deal is worth more than $39 million. She says pension fund trustees committed an “egregious breach of stewardship” by reducing benefits.

Federal Judge Laurie Michelson signed off on the settlement. She says many pensioners suffered significant hardships when benefits were cut.

© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

Comments

Leave a Reply

Please log in using one of these methods to post your comment:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Detroit

Best Places To See Indie Rock In DetroitIt's called Detroit Rock City for a reason.
Guide: Best Barbecue In Metro DetroitSometimes, nothing hits the spot like good barbecue.

Watch & Listen