Herndon v. Huntington Ingalls Industries, Inc.

Plaintiff brought this class action lawsuit on behalf of himself and all participants and beneficiaries of the Huntington Ingalls Industries, Inc. Newport News Operations Pension Plan for Employees Covered by United Steelworkers Local 8888 Collective Bargaining Agreement (the “Plan”) who are receiving an optional form of retirement benefit (other than a lump sum distribution). Plaintiff alleges that the alternative forms of benefit, such a joint and survivor annuities, are not the actuarial equivalent of the standard, single-life annuity offered under the Plan, in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”). Retirees that select these alternative forms of benefits receive less in their monthly pension checks than they should as a result of the outdated actuarial formulas used by Defendants.

The Court denied Defendants’ Motion to Dismiss and the parties’ cross-motions for summary judgment, certified the class and set a date for trial. However, the Parties reached an agreement to settle the case shortly before trial was set to begin. The proposed settlement was submitted to the Court for preliminary approval on November 12, 2021.

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