US Bancorp Retirees Advance Suit Over Early Pension Calculations

Former US Bancorp employees challenging how the bank calculates certain early retirement pensions are moving forward with claims under two ERISA provisions involving actuarial equivalence and nonforfeiture of benefits, according to a Minnesota federal court ruling.

Judge Nancy E. Brasel on Monday declined to dismiss claims that the bank violated an Employee Retirement Income Security Act rule requiring optional pension formats to the the “actuarial equivalent” of a traditional, single-life pension. The workers adequately alleged that pension calculations must be based on “reasonable” interest rates and life expectancy data in order to satisfy the statute, Brasel said.

Brasel focused her ...