Alcoa USA Corp. Faces Legal Repercussions for Terminating Retiree Health and Life Insurance Benefits, Judge Rules in Favor of Retirees

Alcoa responsible for discontinuing retiree health and life insurance coverage

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

Judge Young also recognized 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. The ruling was issued in the US District Court for the Southern District of Indiana.

Alcoa is now 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. Alcoa will need to address the consequences of wrongfully terminating the benefits and ensure that retirees receive the promised insurance coverage going forward.

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