This class action lawsuit claims that Travelport Legacy Pension Plan violated the Employee Retirement Income Security Act (ERISA) by miscalculating pensioners’ benefits and breaching fiduciary duties.
One plaintiff in this case, Angela Williamson, is a resident of Atlanta, Georgia and is a former employee of United Air Lines, which is now Travelport, LP. She is a participant of the pension Legacy Plan that is sponsored and administered by Travelport and that qualifies as an employee pension benefit plan under ERISA. On January 24, 2012, Williamson and her lawyer began discussions with Travelport about beginning to collect her pension benefits. After seven months of negotiation, Travelport agreed to look through their own documents to find her earnings to calculate her pension plans. The earnings number that they had told her appeared to be inaccurate, but Travelport refused to provide any sort of backup documentation regarding her salary. As it turns out, Travelport failed to keep appropriate records of her earnings in breach of fiduciary duty. Further, the plan called for a monthly benefit to be calculated as “1.6% of [employee’s] final average compensation, multiplied by months of benefit service, divided by 12.” Travelport inaccurately calculated this number by subtracting the 54 months that Williamson was an employee at Covia, a predecessor of Travelport.
ERISA is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans. requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; requires plans to establish a grievance and appeals process for participants to get benefits from their plans; and gives participants the right to sue for benefits and breaches of fiduciary duty.
Based on the facts of the case, the plaintiff alleges that Travelport committed the following violations: