U.S. Bancorp Fights Class Claims Over Pension Calculations

U.S. Bancorp is the latest employer to defend itself from a proposed class suit claiming its pension calculation methods shortchange workers.

The Employee Retirement Income Security Act doesn’t allow parties to bring private lawsuits to enforce regulations issued under the tax code, U.S. Bancorp said in its Feb. 19 motion to dismiss. And ERISA doesn’t limit the actuarial factors companies can use when calculating pensions, the company argued.

The company is accused of using an early commencement factor to calculate the pensions of early retirees that is unreasonable, excessive, and results in an illegal forfeiture of benefits. There are about ...