PepsiCo Accused of Shorting Pensions of Married Couples

PepsiCo Inc. is the latest company to face accusations of shorting its pension beneficiaries through unreasonable calculations, according to a new lawsuit. This time married couples say they get a smaller payout than singles.

William DuBuske says PepsiCo’s joint and survivor annuity conversion factor is to blame for pension payments lower than the single life annuity payments unmarried pensioners receive, according to a omplaint filed Dec. 12.

If true, that means PepsiCo’s use of the conversion factor runs afoul of requirement in the Employee Retirement Income Security Act of 1974 that joint and survivor annuity benefits be equivalent to those ...