Judge Orders AK Steel to Pay $46M in Pension Lawsuit |
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A federal judge ordered AK Steel Corporation to pay at least $46.2 million to 1,250 former employees in a class action lawsuit over pension benefits. The 2002 lawsuit charged that the company had miscalculated the lump sum pension payment for participants in one of its pension plans. The plaintiffs claimed the method used to calculate the payments does not comply with federal law and resulted in underpayments.
The plaintiffs all retired or were terminated by Jan. 1, 1995, and got their pension benefits under the Retirement Accumulation Pension Plan in a lump sum by April 1, 2005.
U.S. District Judge Sandra Beckwith ordered AK Steel on to pay about $37.6 million in damages and $8.6 million in pre-judgement interest for a total of about $46.2 million, but the judge also ordered that post-judgement interest will accrue at a rate of about 4.7 percent per year until the payment is made.
AK Steel notified the Securities and Exchange Commission that it intends to appeal the ruling.
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