Howard University has reached an agreement to settle a proposed class action lawsuit concerning the use of outdated mortality data to calculate retirement benefits for its retirees. The lawsuit, led by retiree Stephen Whetstone, claimed that the university’s use of a decades-old mortality table unlawfully reduced pension payouts.
In a joint status report filed in D.C. federal court on Monday, both Whetstone and Howard University announced that they had reached a settlement following a February 19 mediation session. The parties are now working to finalize the agreement and intend to request preliminary approval from the court by June 12, 2025.
Whetstone, who served at Howard University for 14 years, filed the lawsuit under the Employee Retirement Income Security Act (ERISA) in August 2023. He alleged that the university and its retirement plan committee used a 1984 mortality table and a 7% interest rate to convert single life annuities into joint and survivor annuities (JSAs), resulting in lower monthly payments for retirees. Whetstone argued that more current mortality data would have led to higher pension benefits.
For instance, Whetstone, who retired in September 2018, selected a qualified 66 2/3% JSA that paid him nearly $585 each month. He contended that using more recent mortality data would have provided him an additional $18 per month, reducing his benefits by over $2,880 throughout his retirement.
U.S. District Judge Loren L. AliKhan partially granted Howard University’s motion to dismiss the case in September 2023, ruling that Whetstone’s claim related to the omission of a specific conversion formula was filed too late. However, the judge allowed Whetstone’s allegations regarding the breach of fiduciary duty and violation of ERISA’s actuarial equivalence requirement to proceed.
The case, Whetstone v. Howard University et al., is pending in the U.S. District Court for the District of Columbia under case number 1:23-cv-02409.
