October 3, 2024
Citgo will increase the value of pensioners’ retirements by $10 million to settle a class action alleging it shorted early retirement payouts by basing the allowances on outdated mortality tables that used data from the 1970s, according to filings in Illinois federal court.
Citgo Petroleum Corp. retirees entered a motion for preliminary approval Wednesday in the Employee Retirement Income Security Act suit. Pensioners filed the settlement agreement, preliminary approval motion, supporting memorandum and other documents after first reporting a deal to resolve the case in September.
Citgo has agreed to increase the value of retirees’ annuities by $10 million, calculated as additional present value added to their benefits under terms spelled out in the settlement agreement. The agreement also sets the maximum amount of attorney fees, expenses and class representative service awards at $4.75 million.
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The retirees are represented by Kai Richter, Michelle C. Yau, Daniel J. Sutter, Ryan Wheeler, Carol V. Gilden and Eleanor Frisch of Cohen Milstein Sellers & Toll PLLC, by Rachana A. Pathak, Peter K. Stris, Victor O’Connell and John Stokes of Stris & Maher LLP, by Todd Jackson and Nina Wasow of Feinberg Jackson Worthman & Wasow LLP and by Shaun P. Martin of the University of San Diego Law School.
Read Citgo Will Increase Pensions $10M To End Mortality Table Suit.