Compliance August 4, 2023

Multiemployer Plans in Service, Printing, Manufacturing Receive More Than $1B in Assistance

The three plans cover more than 30,000 participants across two states and Washington, D.C.

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The Pension Benefit Guaranty Corporation this week allocated more than $1 billion to three struggling multiemployer pension funds with more than 30,000 combined participants through the Special Financial Assistance program.

The IUE-CWA Pension Plan, a pension in the manufacturing industry with 13,760 participants, will receive $260 million. The Pittsburgh-based fund was projected to become insolvent in 2029, at which point it would have had to cut benefits by 15%.

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IUE-CWA had 658 active participants at the end of 2021, 7,640 participants receiving benefits and 4,086 entitled to benefits in the future.

The UFCW Local One Pension Plan, a pension fund in the service industry with 19,177 participants, will receive $764 million. The Oriskany, New York-based fund was projected to become insolvent in 2026, when it would have had to cut benefits by 15%.

The plan had 672 active participants at the beginning of 2021, but only 294 at the end of 2021. It also had 7,493 participants receiving benefits and another 10,491 entitled to future benefits, according to the fund’s Form 5500.

The Newspaper Guild International Pension Plan, a Washington, D.C.-based fund with 5,824 participants, will receive $62 million in SFA money. The plan was projected to become insolvent by 2034, when it would have had to cut benefits by 15%.

The plan had 364 active participants at the end of 2021, 1,557 participants receiving benefits and 2,825 entitled to benefits in the future, according to its Form 5500.

Benefits August 4, 2023

RTX Corp. Sued for Denying Beneficiary Long-Term Disability Benefits

The aerospace and defense contractor was sued for allegedly failing to pay required long-term disability benefits to a disabled former employee.

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A former employee at RTX Corp. sued the aerospace and defense company for allegedly denying her long-term disability benefits provided under the employer’s benefits plan and for violating the Employee Retirement Income Security Act.

Plaintiff Lori Miars worked at the plan sponsor, formerly Raytheon, as a senior telecom technologist, was a participant in the Raytheon Company Disability Plans and was eligible for disability benefits under the plan, according to the complaint.

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“On December 13, 2021, Defendant, through its claim administrator, issued a letter to Plaintiff stating that her long-term disability benefits had been terminated effective December 10, 2021, because, allegedly, she was no longer disabled under the terms of the Plan,” the complaint states.

Miars filed an administrative appeal contesting the termination of her benefits in June 2022, and she received a final decision denying her long-term disability benefits in October 2022, according to the complaint.

“As of this date, Plaintiff continues to be disabled in that as a result of her medical conditions she is unable to perform her own occupation or any occupation,” the complaint adds.

The suit, Miars v. Raytheon Company Disability Plans, was filed on Monday in U.S. District Court for the District of Massachusetts.

Miars became totally disabled in September 2012—during the period within which the plan was in full force and effect—while she was a covered employee, filed an application for long-term-benefits, and began receiving benefits on April 19, 2012, according to the complaint.

The Raytheon Company Disability Plans provide long-term disability benefit payments to covered beneficiaries that have become “totally disabled” as a result of “sickness or injury,” according to  the plan.

“Total Disability or Totally Disabled means that, because of sickness or an injury which is not covered by an applicable workers’ compensation statute, a Participant cannot do the essential elements and substantially all of the duties of his or her job with the employer even with reasonable accommodations,” the plan’s language cited in the complaint says. “Furthermore, after 18 months, the Participant cannot do any other job for which he or she is fit by education, training or experience.”

Miars is seeking a judgment from the court declaring she is totally disabled and requiring Raytheon to pay both back benefits, plus interest, and continue paying her benefits as long as she remains disabled, subject to the applicable benefit period in the plan.

RTX is headquartered in Arlington, Virginia. Requests for comment to RTX were not returned.

The complaint did not identify counsel for RTX.

Miars is represented in the lawsuit by Ivan Ramos and Tere Ramos of Ramos Law LLC, based in Wellesley, Massachusetts.

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