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Compliance April 17, 2013
Cook County Pension Charged with USERRA Violations
April 17, 2013 (PLANSPONSOR.com) - The Justice Department filed a complaint in Illinois alleging a pension fund violated the Uniformed Services Employment and Reemployment Rights Act (USERRA).
Reported by Rebecca Moore
The lawsuit claims the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County, as well as Cook County, failed to allow U.S. Army Reserve Member Latoya Hayward to lawfully contribute to her pension for the time she was serving in the armed forces.
According to the complaint, filed in the U.S. District Court for the Northern District of Illinois, in 2008 Hayward began working for John H. Stroger Jr. Hospital, which is owned and operated by Cook County.During her employment with Stroger Hospital, Hayward was mobilized for a two-year tour of duty with the Army Reserves starting on July 27, 2009.
Upon Hayward’s return from duty, the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County notified her that not only was she ineligible to make payments into her pension for the 90-day grace period following her active military service, but also that her employee contributions for the two-year period of her active military service would be subject to a 3% interest fee.
Among the protections provided by USERRA are pension-related provisions that treat a service member who is called to active duty as if she has had no break in service for purpose of the administration of pension benefits.According to Hayward’s complaint, both of the County Employees’ and Officers’ Annuity and Benefit Fund of Cook County’s requirements for her participation in her employer’s pension plan violated USERRA’s pension protection provisions.