Welcome to the CIGNA Pension Plan Class Action Lawsuit
site providing information on the increased CIGNA retirement benefits ordered by the Supreme Court in Amara v. Cigna Pension Plan, C.A. 01-2361 (D.Conn.). To obtain your increased CIGNA retirement benefits, start by clicking Notice of Retirement Benefits and Address Verification Form.
If you have any information related to the Amara v. CIGNA Pension Plan class action lawsuit that you would like to share, please send an email to MyCignaPension@verizon.net.
October 24, 2016: On August 3, 2016, Plaintiffs' counsel filed a brief in response to a request from the Court for further discussion of the appropriateness of Cigna's use of "floor" interest rates that will reduce the A+B relief. On August 23, 2016, Plaintiffs' counsel also filed a response to a proposed reply from Cigna on this. Our best estimate is that the Court will issue rulings on these issues by the end of the year. Because Cigna has clearly not been complying with the Court's Orders, Plaintiffs' counsel continue to work with independent actuaries and accountants to perfect a spreadsheet that computes each class member's relief in full compliance with the Court's Orders.
July 21, 2016: The Amara case has repeatedly been decided by the Courts in favor of the employees and retirees. But Cigna is still not complying with Court orders on calculating the individual amounts of relief and is actively trying to cut almost all of the amounts by more than one-half. In February and March, we went back to the Court with "objections" because of what CIGNA submitted as examples of the amounts. The Court has not ruled on our objections, but recently asked for further papers which we expect to lead to rulings by the end of September. Hopefully, the Court will agree with our objections. Our best guess continues to be that notices with the correct relief amounts can be mailed out before the end of this year.
On February 16, 2016, an article about this case entitled “Long Running Lawsuit by Cigna Employees Nears Finish” was featured on the front page of the Hartford Courant. To read the article, click here (free registration is required to read the entire article).
On January 14, 2016, the Court issued a decision on the calculation of the “A+B” relief which rejected CIGNA’s efforts to reduce the relief by misapplying plan provisions and revising interest rates. The Court ordered CIGNA to calculate benefit amounts for all class members based on its decision and to provide the results to Plaintiffs’ counsel for review and to make any objections. In a separate decision on January 21, 2016, the Court modified notices that CIGNA must provide to all plan participants explaining how the changes to the CIGNA’s cash balance plan in 1998 produced large benefit reductions. The notices will be submitted to the Court for final approval in mid-February.
IMPORTANT -- ADDRESS VERIFICATIONS NEEDED FOR NOTICES
On November 24, 2015, and January 20, 2016, Plaintiffs’ counsel mailed reminder letters to class members who have not yet returned an Address Verification Form asking them to confirm or update their addresses. If you have not already returned the Address Verification Form, you may print a copy of the Address Verification Form and mail the completed form to KCC Class Action Services, P.O. Box 43395, Providence, RI 02940-9577. To ensure that you receive future notices about the payment of these benefits, please complete the Address Verification Form.
On October 23, 2015, a notice was filed by Plaintiffs' counsel with the Court summarizing five objections to the attorneys’ fee and incentive award request and informing the Court that to that date 16,020 Address Verification Forms have been received from class members.
On June 25, 2015, the U.S. District Court approved a Notice About Increased Retirement Benefits from the CIGNA Pension Plan and Proposed Attorneys' Fee
Award and an Address Verification Form, which have been mailed to all class members.
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FREQUENTLY ASKED QUESTIONS ABOUT THE NOTICE ABOUT INCREASED CIGNA RETIREMENT BENEFITS AND THE PROPOSED ATTORNEYS’ FEE AWARD:
1. When will I receive my CIGNA pension benefit increase?
You will receive a separate notice about your “A+B” retirement benefit and when it will be paid. The Court will most likely order CIGNA to start making the increased retirement benefit payments early next year. At this point, you should fill in and submit your Address Verification Form to ensure that you receive future notices about the payment of your benefits.
2. How much will the new CIGNA retirement benefits be?
Under the Court’s Order, class members will receive what are called “A+B” benefits. “A” is your monthly benefit under the old pension plan which is based on your pay and years of service as of December 31, 1997. “B” is all of the benefit credits and interest credits that you earned under the cash balance plan after January 1, 1998, not including the amount of your opening balance.
We cannot give you the exact amount of your benefit increase at this time because the Court and Plaintiffs’ counsel are reviewing exactly how CIGNA intends to calculate the A+B benefits and whether CIGNA’s proposed methodology complies with the Court’s Order. You will receive a future notice about the amount of your A+B benefit and how it will be paid (hopefully early next year).
A. Currently receiving annuity benefits. If you are currently receiving a monthly pension benefit, you should receive an increased annuity and a “back payment” to account for the benefits you should have been paid since your payments began.
B. Received lump sum pension benefits distribution in past. If you received a lump sum pension benefit payment in the past from CIGNA, the amount you received will be subtracted from your A+B benefit, and you will receive the difference as a monthly payment starting as early as age 55 if you are eligible for early retirement. If the increase is less than $5,000, you will receive a cash lump sum payment.
C. Has not received any pension benefits payment in annuity or lump sum form. If you have not started receiving your pension benefits, you will receive the “A” part of your “A+B” benefit as a monthly payment when you decide to retire, which can be as early as age 55 if you are eligible for early retirement. You can still receive the “B” part of your “A+B” benefit at any age as a lump sum or monthly payment.
3. Why doesn’t CIGNA pay the 17.5% attorneys’ fees?
Under the law, the Court does not have statutory authority to order CIGNA to pay the attorneys’ fees on top of the increased benefits. Instead, in this type of case, the fees are generally paid as a percentage out of what’s called a “common fund.” This spreads the costs of the lawsuit among all members of the class.
4. What if I don’t have an objection about the attorneys’ fees but want to say something about how CIGNA informed or misinformed me about the cash balance pension changes?
If you do not have an objection, there is no need to mail anything in to the Clerk of the Court in New Haven, CT. But if you want to say something about what CIGNA did, you can file comments with the Clerk of the Court or comment by writing the lead counsel for the Plaintiff class, Stephen R. Bruce, 1667 K Street, NW, Suite 410, Washington, DC 20006. You can also send an email to email@example.com.
5. How do I contact CIGNA directly about my existing benefits?
You can contact the CIGNA Account Team at Prudential Retirement at 1-877-778-2100 (or 1-877-760-5166 for the hearing impaired) or write to Prudential Retirement, Attn: DB Operations, P.O. Box 5370, Scranton PA 18505-5370. You can also send a copy to lead counsel for the Plaintiff class, Stephen R. Bruce, by mailing to 1667 K Street NW, Suite 410, Washington, DC 20006, by sending an email to firstname.lastname@example.org, or by calling 1-866-545-7361.
If you are an active employee, you can access the Prudential website through the link on the “Your Cigna Life” (YCL) website.
6. How do I obtain a replacement Notice and Address Verification Form?
You can download a copy of the Notice or Address Verification Form by clicking on the link in the sidebar to the left.
7. I did not receive a Notice in the mail but believe I should have received one. What can I do?
Notices were mailed to CIGNA employees who are entitled to additional retirement benefits as a result of this case. CIGNA provided the Plaintiffs’ attorneys with the class list. If you believe that you should be included in the class, please provide your name and the years you worked for CIGNA.