AT&T Workers Say They Were Penalized For Retiring Early

Law360 (October 2, 2019, 2:46 PM EDT) -- AT&T and its benefit plan have been hit with a proposed class action in California federal court alleging they violated the Employee Retirement Income Security Act by shorting early retirees on pension benefits. 

The plaintiffs alleged in a complaint filed Tuesday that while the phone company promised employees retiring before 65 years old an early retirement benefit, it changed the plan in May to add an "early retirement factor" that was portrayed as a limited-time, lump sum benefit but only reduced their payout.

"The earlier the participant retires, the greater the reduction to her benefits," the complaint said. "These impermissible reductions penalize...

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