Alcoa USA Corp. Found Liable for Wrongful Termination of Health and Life Insurance Benefits for Retirees in Federal Lawsuits

Alcoa responsible for discontinuing retiree health and life insurance coverage

Alcoa USA Corp. was found to have wrongly terminated health and life insurance benefits for certain retirees, according to a federal judge’s ruling in two separate lawsuits. The judge, Richard L. Young, stated in his orders that the collective bargaining agreement for post-1993 retirees clearly promised them life insurance benefits, leading to partial summary judgment in favor of the retirees challenging the termination of this coverage.

In his ruling, Judge Young also acknowledged some positive news for Alcoa, noting that 88% of the retirees seeking life insurance benefits were covered by a separate plan that was not terminated. However, this did little to ease the burden on the affected retirees who were left without their promised life insurance coverage.

The Pittsburgh-based aluminum producer is now liable for reinstating the life insurance benefits for the retirees who were wrongly denied coverage. The judge’s decision brings some relief to the affected retirees who were left without this important insurance coverage. Alcoa will need to address the consequences of wrongfully terminating the benefits and ensure that retirees receive the promised insurance coverage going forward.

The ruling was issued in the US District Court for the Southern District of Indiana and marks a victory for the retirees who challenged Alcoa’s decision to terminate their health and life insurance benefits.

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