FOLLOW US

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to a $2.35 million settlement between Duke University and a retired employee who accused the institution of using outdated mortality tables to calculate pension benefits—shortchanging retirees out of millions.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Outdated Actuarial Tables at the Center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 These outdated calculations allegedly led to systematic underpayments in joint and survivor annuities and preretirement survivor annuities.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.

A Win for Retirees’ Rights

Franklin’s legal team said the case underscores the need for employers to keep pension formulas current with modern life expectancy data. The court found that the settlement not only compensates affected retirees but also ensures future compliance with ERISA standards.

While final approval is still pending, the preliminary ruling represents a crucial victory for the class. The settlement ensures that retirees—many of whom depend heavily on these benefits—will see their compensation reflect the true value of their years of service.