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Raytheon Retirement Plan Changes and Benefit Payouts ERISA Class Action

This class action concerns retirement benefits, bringing suit against Raytheon Company, the Raytheon Bargaining Retirement Plan, and the plan’s administrator. The complaint alleges that these defendants changed rules for the plan without notice to the participants and did not pay out the full benefits that plan members who had a temporary separation from the company were entitled to receive. The law governing such retirement plans is the Employee Retirement Income Security Act (ERISA).

The plaintiff in this case, Timmieo Curry, worked for Hughes Aircraft and its successor Raytheon for thirty-three years, from 1985 to 1996, then again from April 1998 until his retirement in July 1, 2020. He began participating in the Hughes Bargaining Retirement Plan around January 1991.

At the time of his separation, the complaint claims, he was paid $8,517.70 which supposedly represented his contributions to the plan with interest.

When Raytheon acquired Hughes in 1997, the complaint says, it spun off part of the plan as the Raytheon Bargaining Plan.

The complaint alleges, “Upon information and belief, the terms of the Plan in effect when Mr. Curry left employment in 1996 and the terms of the 1997 Hughes Plan in effect when Mr. Curry returned to employment in April 1998 both allowed Mr. Curry to restore the benefits he had earned that were attributable to his own contributions by paying back the $8,517.70 he had received with interest.” However, the defendants claim that when he returned to work in 1998, he should have been put into a non-contributory part of the plan, which had lesser benefits.

Curry contends that the plan was amended at an unknown date, to be applied retroactively, and that he was never given notice about being in the non-contributory part of the plan. He remained in the same bargaining unit job until 2008, when he began working as a salaried Raytheon electrical engineer and began participating in the Raytheon Salaried Pension Plan.

However, after his retirement, Curry was not paid the monthly benefits he expected, via a five-year Temporary Modified Cash Refund Annuity Option, but a lower monthly annuity amount.

The complaint alleges, “Defendants applied an offset to Mr. Curry’s benefits allegedly based on his withdrawn contributions despite informing Mr. Curry that he was not permitted to repay the withdrawn contributions…” The complaint claims they are not permitted to do this.

Two classes have been defined for this action:

  • Class 1 is all vested participants under the contributory part of the plan and, if deceased, their surviving spouses or beneficiaries, who, following a voluntary separation from service before retirement, were rehired and unilaterally assigned to the non-contributory part of the plan on rehire.
  • Class 2 is all vested participants under the contributory part of the plan and, if deceased, their surviving spouses or beneficiaries, who had a separation from service before retirement, whether voluntary or involuntary, who withdrew their contributions upon separation form service before retirement, and following their rehiring, did not repay their contributions to the plan.
Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Raytheon Retirement Plan Changes and Benefit Payouts ERISA Complaint

March 16, 2022

This class action concerns retirement benefits, bringing suit against Raytheon Company, the Raytheon Bargaining Retirement Plan, and the plan’s administrator. The complaint alleges that these defendants changed rules for the plan without notice to the participants and did not pay out the full benefits that plan members who had a temporary separation from the company were entitled to receive. The law governing such retirement plans is the Employee Retirement Income Security Act (ERISA).

Raytheon Retirement Plan Changes and Benefit Payouts ERISA Complaint

Case Event History

Raytheon Retirement Plan Changes and Benefit Payouts ERISA Complaint

March 16, 2022

This class action concerns retirement benefits, bringing suit against Raytheon Company, the Raytheon Bargaining Retirement Plan, and the plan’s administrator. The complaint alleges that these defendants changed rules for the plan without notice to the participants and did not pay out the full benefits that plan members who had a temporary separation from the company were entitled to receive. The law governing such retirement plans is the Employee Retirement Income Security Act (ERISA).

Raytheon Retirement Plan Changes and Benefit Payouts ERISA Complaint
Tags: ERISA Violations, Incomplete payment of benefits due, Retirement Plan Changes, Retirement Plans