• Tue. May 28th, 2024

Alcoa responsible for discontinuing retiree health and life insurance coverage

Byeditor

Mar 27, 2024

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

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.

By editor

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