Denial Of COLA On Lump-Sum Distributions Violates ERISA, Federal Judge Rules

Denial Of COLA On Lump-Sum Distributions Violates ERISA, Federal Judge Rules

CAMDEN, N.J. - A defined benefit pension plan violated the Employee Retirement Income Security Act by providing cost-of-living adjustments (COLAs) to distributions in the form of monthly annuity payments but not the equivalent value of the COLAs to one-time lump-sum payments, a federal judge in New Jersey ruled June 27 (Shirley Lightfoot, et al. v. Arkema, Inc., et al., No. 12-773, D. N.J.; 2013 U.S. Dist. LEXIS 90415).

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