Alcoa USA Corp. Faces Backlash for Wrongful Termination of Retiree Health and Life Insurance Benefits

Alcoa responsible for discontinuing retiree health and life insurance coverage

In two separate lawsuits, a federal judge has ruled that Alcoa USA Corp. wrongfully terminated health and life insurance benefits for certain retirees, leading to partial summary judgment in favor of the retirees challenging the termination of this coverage. The judge, Richard L. Young, stated in his orders that the collective bargaining agreement for post-1993 retirees clearly promised them life insurance benefits.

Alcoa will now be 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. However, there is some positive news for Alcoa as 88% of the retirees seeking life insurance benefits were covered by a separate plan that was not terminated.

The Pittsburgh-based aluminum producer must now address the consequences of wrongfully terminating the benefits and ensure that retirees receive the promised insurance coverage going forward. This ruling was issued in the US District Court for the Southern District of Indiana.

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