A class action filed by former employees of United Parcel Service of America accusing the company of using out-of-date mortality tables to calculate pension benefits was dismissed.
U.S. District Judge Timothy C. Batten Sr. dismissed the ERISA suit against UPS and other related parties on Aug. 27, arguing that the plaintiffs failed "to exhaust administrative remedies" before taking its case to court.
As previously reported, the suit, filed on Jan. 31 in U.S. District Court in Atlanta by Timothy Brown, Ronnie Suveg and Joseph Bobertz, argued that the two UPS defined benefit plans used 1983 mortality data to calculate retiree benefits, which failed to account for people living longer and led to reduced benefits.
The plaintiffs wrote that UPS officials "knew or should have known" that the mortality tables used to calculate retirees' benefits "were outdated and unreasonable" because the company applied updated mortality tables to its financial statements.
The defendants moved on April 14 to dismiss the complaint, arguing that the plaintiffs "failed to exhaust their administrative remedies before seeking relief" in court.
Matthew O’Connor, a UPS spokesman, said in an email that “UPS is pleased with the court’s decision.”
David Worley, a partner in the law firm Evangelista Worley and chief counsel for the plaintiffs, could not be immediately reached for a response to the suit’s dismissal.
