Newark, DE: (Aug-28-07) A class action lawsuit was brought against Hercules Inc., alleging that the company short changed retirees when it switched the way it calculated retirement payouts. The class involved about 2,200 people, including those who retired from the company after Dec. 31, 2001 and took a lump-sum payment and current employees who might opt for a lump-sum payment in the future.
As part of a settlement reached, Hercules will pay slightly more than $18 million, plus another $328,000 towards the plaintiffs' attorneys' fees and costs. The affected retirees and workers will pay the remaining roughly $1.2 million in plaintiffs' attorneys' fees and costs. Those affected by the settlement can expect to receive payments that will average about 10% of the lump-sum amount they already received. The actual amount will vary depending on the interest rates in effect when the person retired. Sources claim that the settlement doesn't affect the amount of a retiree's monthly payment. Under Hercules' pension plan, workers can choose to take 51% of their retirement benefits in the form of a cash payment, with the remaining 49% in monthly installments. [DELAWARE ONLINE: RETIREMENT PAYOUT]
