Read the court ruling here.
The retirees won the ruling in Wisconsin Eastern District Federal Court. The case was filed by Michael J. Thompson and others against the retirement plans for SC Johnson and JohnsonDiversey.
The retirees had asked for two rulings against the companies. They first claimed the retirement plans "backloaded" benefits, which the court dismissed. The second was that SCJ and JohnsonDiversey miscalculated how much it paid out in "lump-sum payments" to the retirees. The federal court agreed with the retirees and ordered the companies to refigure the payments. From the ruling:
The court finds that the unlawful conduct here is the Plans' calculation and payment of lump sum benefits in an amount less than the present value of the participants' accrued benefits at age 65, which generated an alleged forfeiture of benefits to the plaintiffs. A forfeiture of benefits pursuant to an improper calculation cannot occur until the "lump sum" amount is determined and dispersed to the participant.The two sides have a July 11 deadline to reply to the court. After these filings the court will enter a final order on damages.