AK Steel retirees settle suit

news
Jan 12, 2011
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CINCINNATI — The approval of a $178.6 million class action settlement came this week in U.S. District Court for more than 3,000 hourly and salary retirees, retiree spouses and surviving spouses of AK Steel’s Butler Works plant.

As a result, retirees from Butler Works before 2006 will continue to receive health insurance benefits with no price increases through the end of 2014, said Greg Coleman, co-counsel for the retirees. Coleman said on Jan. 1, 2015, a voluntary employees’ beneficiary association will take over a $91 million trust fund to handle payments and its trustees will determine if any price increases need to be made at that time.

AK Steel spokesman Alan McCoy said the settlement is fair for both sides.

The settlement was modeled on a 2006 lawsuit settled in 2008 between AK Steel and about 4,900 retirees from Middletown Works.

That settlement established a $663 million trust fund, managed by retirees that will continue to pay for their benefits until they die.

Butler Works retirees filed the suit June 2009. The original dispute was that AK Steel was taking away certain benefits effective Jan. 1, 2007, and on Jan. 1 2010, they were going to start charging premiums for the first time, Coleman said.

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