Honeywell Must Defend Would-Be Class Suit Over Pension Payouts

Honeywell International Inc. must face a lawsuit challenging how it calculates certain optional pension formats, a federal judge held, but claims centering on payments to spouses of workers who die before retirement won’t move forward.

Judge Matthew F. Kennelly on Wednesday denied the aerospace company’s motion to dismiss multiple claims under the Employee Retirement Income Security Act. The plaintiff retiree plausibly alleged that her optional pension format—which is designed to pay benefits to her surviving spouse after her death—isn’t actuarially equivalent to a traditional, single-life pension as required by federal law, he said.

Dozens of large employers have been sued ...