Colgate-Palmolive Must Correct Pension Benefits, Pay Retirees

Colgate-Palmolive Co. must recalculate the pension benefits of about 1,200 retirees who chose lump sum payments under their pension plan, a federal court in New York ruled Monday.

The court directed the household-products company to recalculate and pay the class members’ pension benefits but put the ordered relief on hold to allow for an appeal.

The lawsuit, filed in 2016, sought $150 million in benefits owed under a 2005 plan amendment.

Colgate erroneously interpreted the residual annuity agreement, Judge Lorna G. Schofield of the U.S. District Court for the Southern District of New York said.

Colgate and its employees have ...