Executives Awarded Prejudgment Interest After Plan Delayed Payment of Benefits

A group of executives with a financial services company is entitled to prejudgment interest on benefits due from their employer’s terminated executive retirement plan, because the company failed to pay a portion of the benefits for the three-year period after the benefits became due, the U.S. District Court for the District of Nebraska ruled Nov. 20 (Edelstein v. Optimus Corp., D. Neb., 8:10-cv-00061-JFB-FG3, 11/20/12).

Finding that damages would not fully compensate the executives for the loss of use of their benefits, Judge Joseph F. Bataillon awarded prejudgment interest to the executives under Section 502(a)(3)(B) of the Employee ...