DETROIT (AP) - Lawyers say more than 300 people are covered by a settlement in a lawsuit over reduced benefits for disabled carpenters.
In 2013, the struggling Detroit-area pension fund changed the plan to reduce benefits for people who were receiving them. Thomas Underwood sued, saying the changes violated federal law and the rules of the fund.
Under the settlement, recipients will recover 95 percent of past and future payments. Attorney Eva Cantarella said Wednesday the deal is worth more than $39 million. She says pension fund trustees committed an “egregious breach of stewardship” by reducing benefits.
Federal Judge Laurie Michelson signed off on the settlement. She says many pensioners suffered significant hardships when benefits were cut.
Please read our comment policy before commenting.