Alcoa USA Corp. Found Liable for Wrongful Termination of Health and Life Insurance Benefits for Retirees

Alcoa responsible for discontinuing retiree health and life insurance coverage

The Pittsburgh-based aluminum producer, Alcoa USA Corp., was found to have wrongfully 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.

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 consequences of wrongfully terminating these benefits have left many retirees without important insurance coverage. Alcoa will now be liable for reinstating the life insurance benefits for those who were denied coverage. This decision brings much-needed relief to the affected retirees and ensures that they receive the promised insurance coverage going forward.

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