Posts Tagged ‘contributions to pension plan’

Settlement Restores Lost Pension Payments to United Airline Pilots Returning From Military Duty

Pilots returning from military service got justice last week in the form of a settlement restoring the full amount they were due in contributions to their pension plans–another reminder of how the law can be used in positive ways to impact veterans’ lives.

In one of the largest settlements ever reached under the Uniformed Services Employment and Reeemployment Act (USERRA), United Airlines last week agreed to pay $6 million to make up for shortfalls in the pensions of pilots who were returning from duty in the National Guard and Reserves.

The settlement will benefit about 1,160 reservists, most of them pilots, who were called up for active-duty service for more than 30 days between 2000 and 2010 while working for the airline.

At issue was United’s contributions to the employees’ 401(k) pension accounts. Under USERRA, companies must continue to provide routine contributions to retirement accounts during reservists’ military service.

United Airlines was providing mobilized reservists with pension contributions that were too small, calculating the amount based on a minimum wage for union employees rather than the individual employees’ actual salaries or wages immediately prior to deployment, according to a lawsuit filed by the employees.

You can read more about the lawsuit and settlement in the Navy Times.

To learn more about the laws and some economic incentives regarding hiring of returning veterans, see my post from last year’s Memorial Day