AARP filed an amicus brief in federal court in a class-action lawsuit against Consolidated Freightways Corp.'s pension plan and actuarial consultant Towers Perrin, supporting plan participants' right to sue fiduciaries.
The U.S. District Court in San Jose, Calif., has indicated that only the PBGC can sue for breach of fiduciary duties once the agency has taken over the plan, said Mary Ellen Signorille, AARP senior attorney. Consolidated Freightways and Towers Perrin have filed a motion to dismiss the suit on that issue.
"We think it's important for participants be able to sue alleging breach of fidicuary duty in an attempt to recover money," she said. "There is a potential for participants or the PBGC of recovering more money. It would be a win-win."
The PBGC took over the salaried employees plan, which had $228 million in assets and $504 million in liabilities, last June. The suit was filed in August.