Question 1

What is the name of this lawsuit?

Accepted Answer

This lawsuit is called Whetstone v. Howard University, et al., No. 23-2409 (LLA)
(D.D.C.) (the “Action”), and it was filed in the United States District Court
for the District of Columbia on August 17, 2023.

Question 2

What is this case about?

Accepted Answer

Plaintiffs filed a class action lawsuit alleging that Howard University and the
Retirement Plan Committee of the Howard University Employees’ Retirement Plan
(“Defendants”) provided certain participants and beneficiaries of the Plan with
Joint and Survivor Annuity benefits, including Qualified Preretirement Survivor
Annuities, that were not actuarially equivalent to the Single Life Annuities
those participants could have elected at the time they began receiving benefits,
as required by the federal pension law known as the Employee Retirement Income
Security Act (“ERISA”). See Question 4 [/faqs?id=4] for further discussion of
who is in the “Class.”

Specifically, Plaintiffs allege that the actuarial assumptions, such as life
expectancies and interest rates, used by the Plan to convert Single Life
Annuities into Joint and Survivor Annuities resulted in benefits that were lower
in value than required under ERISA. Defendants deny all allegations of
wrongdoing, fault, liability, or damages to Plaintiffs or the Class, deny that
the actuarial assumptions used by the Plan to calculate benefits were improper
in any way, and deny that any Class Member is receiving less than the benefits
to which they are entitled under the Plan. Defendants maintain that the Plan has
been managed, operated, and administered in compliance with ERISA.

Question 3

Why is there a Settlement?

Accepted Answer

The Court has not reached a final decision about the claims in this Action.
Instead, the parties have agreed to the Settlement. The Settlement is the
product of extensive negotiations between the Plaintiffs and the Defendants. The
parties have taken into account the uncertainty and risks of litigation and have
concluded that it is desirable to settle on the terms and conditions set forth
in the Settlement Agreement [/important-documents].

Question 4

Who is affected?

Accepted Answer

The Class includes all participants and beneficiaries of the Plan who: (1) are
receiving monthly benefit payments as of the Measurement Date (the first day of
the month when the Settlement becomes Final), (2) have an Annuity Start Date on
or after January 1, 1995, but before January 1, 2025, and (3) are receiving a
Joint and Survivor Annuity, including a Qualified Preretirement Survivor
Annuity, that is less valuable than it would have been if the participant’s
Single Life Annuity had been converted to that form of benefit using the
interest rates and mortality tables Plaintiffs claim should have been used.

This includes participants receiving Joint and Survivor Annuities, as well as
surviving spouses and other beneficiaries receiving survivor annuity benefits
derived from a participant’s pension under the Plan.

Question 5

What are the settlement terms?

Accepted Answer

The proposed Settlement provides that Defendants will pay the $1,300,000 value
of the Settlement, net of amounts awarded for any Plaintiffs’ Attorneys’ Fees
and Costs (not to exceed $432,900), any Case Contribution Awards to the two
Named Plaintiffs (not to exceed $5,000 each), and other Administrative Expenses,
in the form of increased monthly pension benefits to be paid to Class Members
under the Plan. These increased benefits will be paid during the lifetimes of
the Class Members and, where applicable, their designated survivor
beneficiaries.

In addition to receiving increased monthly benefits on a going-forward basis,
Class Members will also receive retroactive lump sum payments reflecting the
additional monthly benefit amounts that would have been payable beginning as of
the Measurement Date and continuing through the date the increased benefits are
implemented.

FAQs

Basic Information

Basic Information

1. What is the name of this lawsuit?

2. What is this case about?

3. Why is there a Settlement?

4. Who is affected?

5. What are the settlement terms?

6. How much will my benefit increase?

7. Do I need to do something to receive my benefit increase?

8. When will I receive my benefit increase?

9. Can I opt out of the Settlement?

10. How can I tell the Court if I don’t like the Settlement?

11. Do I have a lawyer in the case?

12. How will Class Counsel Be Paid?

13. When and where will the Court decide whether to approve the Settlement?

14. Do I have to attend the Final Approval Hearing?

15. May I speak at the Final Approval Hearing?

16. How do I get more information?