What’s more, the settlement carves out about $1.2 million for the plaintiffs’ attorneys and mandates amendments to the pension plan. This ensures an increase in the monthly payouts for every participant who started receiving a benefit in the form of a JSA.
The Broader Picture: Class Members’ Gain
The remainder of the settlement pool is set to be distributed among roughly 1,009 proposed class members. This group encompasses all plan participants and beneficiaries who began receiving various percentages of JSA or a qualified pre-retirement survivor annuity since November 2016.
Sprint Strikes $3.5M Deal in Pension Dispute : Backdrop of the Dispute
McFadden, Schmidt, and Doncevic launched their lawsuit against Sprint and its employee benefits committee in late 2022. They are part of Sprint’s retirement pension plan, a scheme open to employees hired before mid-2005, which has been closed to new participants since and saw benefit accruals frozen by the end of that year.
The retirees had the option to receive their benefits as a JSA, calculated partly using a mortality table. However, the plaintiffs argued that using the outdated 1984 mortality tables, Sprint undervalued the JSAs, thus flouting ERISA standards.
Reaching a Consensus: Mediation and Statements
After an intense mediation session in September, both parties reached a preliminary agreement. “While we had strong reservations about the plaintiffs’ claims, we’re relieved to put this issue to rest,” stated a T-Mobile spokesperson to Law360. The former workers’ representatives, however, remained unavailable for immediate comments.
Legal Eagles: The Attorneys Involved
Representing the former workers are Alexandra N.C. Rose, Boyd Byers, Jeff P. DeGraffenreid, Scott C. Nehrbass, Christopher M. Barrett, Robert A. Izard Jr., and Douglas P. Needham. Meanwhile, defending Sprint are David R. Godofsky, Emily S. Costin, Margaret E. Studdard, Richard B. Crohan, and Karen R. Glickstein.
