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Plaintiffs prevailed on their ERISA claim for wrongfully reduced pension benefits and were awarded over $1 million in withheld benefits, retroactive and prospective, plus prejudgment interest and attorneys' fees of $137,469.12.
Jarosz v. American Axle & Manufacturing, Inc.
What Happened
Employees at American Axle & Manufacturing participated in a pension plan that promised them specific retirement benefits. The company reduced these pension benefits without proper authorization, preventing workers from receiving the full payments they had earned.
What the Court Decided
A federal court in the Western District of New York ruled in favor of the employees in 2019. The judge found that American Axle wrongfully cut pension benefits in violation of federal retirement plan laws. The company was ordered to pay workers over $1 million in withheld benefits—both what they missed in the past and what they would have received going forward. The court also required the company to pay nearly $137,500 in legal fees and interest charges.
Why This Matters for Workers
This case reinforces that employers cannot arbitrarily reduce pension benefits workers have earned. Retirement savings are legally protected, and companies must follow proper procedures before making changes. If your pension is reduced unexpectedly, you may have grounds to challenge it in court and recover lost benefits.
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