Alcoa Faces Legal Consequences for Wrongful Termination of Retiree Health and Life Insurance Benefits: Federal Judge Grants Partial Summary Judgment in Two Lawsuits

Alcoa responsible for discontinuing retiree health and life insurance coverage

In two separate lawsuits, a federal judge ruled that Alcoa USA Corp. wrongly terminated health and life insurance benefits for certain retirees. Judge Richard L. Young found 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.

The judge 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. This ruling was issued in the US District Court for the Southern District of Indiana.

As a result of the judge’s decision, Alcoa is now liable for reinstating the life insurance benefits for the retirees who were wrongly denied coverage. This brings some relief to the affected retirees who were left without this important insurance coverage. Moving forward, Alcoa will need to address the consequences of wrongfully terminating the benefits and ensure that retirees receive the promised insurance coverage going forward.

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