AT&T has reached a settlement with its current and former employees, agreeing to pay $184.1 million to resolve a lawsuit over pension payments. The lawsuit, which was filed in October 2020, alleged that the company had shortchanged approximately 300,000 employees out of their pension benefits.

The settlement, which was filed in San Francisco federal court, requires a judge’s approval. According to the settlement papers, employees would receive $149.1 million in additional pension benefits, including $113.5 million for retired employees and $35.6 million for current employees. The company’s lawyers may seek up to $35 million to cover legal fees and costs.

AT&T was accused of violating the federal Employee Retirement Income Security Act of 1974 (ERISA) by failing to provide pension payments to married workers that were the actuarial equivalent of payments to single workers. The company used mortality data that were decades out of date to calculate payments, causing married workers to receive less.

AT&T denied any wrongdoing in agreeing to the settlement, stating that it settled to avoid the expense and distraction of prolonged litigation. The company is committed to following the law in administering its pension benefit plan.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.