Alcoa Liable for Ending Retiree Health, Life Insurance Coverage

Alcoa USA Corp. wrongly terminated health and life insurance benefits for certain retirees, a federal judge said in a pair of orders establishing the company’s liability in two separate lawsuits.

The collective bargaining agreement covering certain post-1993 retirees “unambiguously promises” them life insurance benefits, Judge Richard L. Young said in an opinion awarding partial summary judgment to retirees challenging the termination of this coverage.

Young’s order, docketed Tuesday in the US District Court for the Southern District of Indiana, also contained good news for the Pittsburgh-based aluminum producer. Young explained that because 88% of the retirees seeking life insurance benefits—about ...