Koch v. Desert States Employers & UFCW Unions Pension Plan

Workers Win $7.95 Million Settlement Over Incorrect Pension Calculations

This case involved 339 workers whose pension benefits were miscalculated by the Desert States Employers & UFCW Unions Pension Plan. The workers claimed the pension plan violated federal law by incorrectly determining their retirement benefits and failing to provide proper information about how those benefits were calculated. They argued this was a breach of contract and violated ERISA, the federal law that protects employee retirement plans.

The court preliminarily approved a class action settlement where the pension plan agreed to pay $7.95 million to the affected workers. This works out to an average of about $23,450 per person, though individual amounts likely varied based on each worker's specific situation. The settlement resolves the dispute without the pension plan admitting wrongdoing.

This matters for workers because it shows that pension plans must follow strict rules about calculating benefits and keeping participants informed. If your employer or pension plan makes errors in calculating your retirement benefits or doesn't provide clear information about your pension, you may have legal rights. Workers should regularly review their pension statements and ask questions if something doesn't look right.