Judge rules Cigna misled employees on retirement benefits

employees in the case say they will now try to recoup hundreds of millions of dollars
February 20, 2008 5:01:39 AM PST
A federal judge has ruled that Cigna misled its employees about a switch to a new pension plan 10 years ago.Attorneys for the employees in the case say they will now try to recoup hundreds of millions of dollars in retirement benefits for thousands of workers.

The rules in the class-action case, issued by Judge Mark R. Kravitz, concerns Cigna's conversion from a traditional pension plan with defined benefits to a "cash balance" plan, starting in 1998.

Kravitz says Cigna failed to give a key notice to employees that is required under federal law and the company's plan descriptions were, in some instances, downright misleading. CIGNA says it's disappointed with the finding.


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