Supreme Court rejects AT&T appeal in pension case

[Lone_Star_Dem]

Source: Associated Press

WASHINGTON -

The Supreme Court on Monday rejected AT&T Inc.'s appeal of a lower court's $31.2 million verdict against the company in a class action lawsuit over retirement benefits.

At issue in the case is whether a pension plan administered by Ameritech, a local phone company, improperly reduced retirement benefits paid to an employee in 1999. Ameritech was bought by SBC Communications later that year. SBC in 2005 acquired AT&T, keeping the company's name.

Ameritech amended its plan in July 1999 by altering the mortality tables used to calculate retirement benefits.

Ameritech employee Linda Call chose early retirement several months later and took a lump sum payment of her benefits, according to court filings. She charged that the pension plan amendment cost her $36,000, reducing the payment to $219,000.

Read more: http://www.forbes.com/feeds/ap/2008/06/09/ap5095975.html