A North Carolina federal judge has given preliminary approval to a $2.35 million settlement between Duke University and a retired employee who accused the institution of using outdated mortality tables to calculate pension benefits—shortchanging retirees out of millions.
U.S. District Judge Catherine C. Eagles signed off Tuesday on the proposed class settlement, finding that the deal was fairly negotiated and backed by extensive litigation. The approval marks a significant step toward closing a class action that could impact hundreds of Duke retirees.
Outdated Actuarial Tables at the Center
Plaintiff Joy Franklin filed the class action in September 2023, arguing that Duke violated the Employee Retirement Income Security Act (ERISA) by using obsolete actuarial mortality assumptions to determine pension payouts. These outdated calculations allegedly led to systematic underpayments in joint and survivor annuities and preretirement survivor annuities.
Court filings indicate that over 700 class members will benefit from the agreement. Each retiree is expected to receive increased monthly pension payments, averaging around $14 more per month for life.
