Attorney Ian Russell Secures Pension Benefits for Widow of Deceased Employee

On September 22, 2014, an arbitrator ruled in favor of USW Local 2936 that the O.S. Walker Company violated the parties' CBA when it paid only half of a deceased employee's pension distribution to his widow. Attorney Ian Russell argued the case for the Steelworkers.

The matter arose in February 2013, when the parties agreed to terminate the Company's pension with the option for employees to either take a lump sum payout or to roll their distributions into a 401(k) plan. Based on the parties' agreement, the Company sent notices to employees in June stating that the plan would be terminated in August and asking employees to make their elections. The notices indicated that the payout date would be December 1, 2013.

The employee at issue elected a roll-over of his distribution into his 401(k), but he passed away prior to the distribution date. The Company thereafter paid the employee's widow only half of the distribution amount, asserting that its actions were dictated by federal law. Local 2936 brought the matter to arbitration.

Based on the arguments asserted by Attorney Russell, the arbitrator held that the Company's obligations were governed by the CBA and not by law. He held that the contract required a full payout of the distribution and ordered that the employee's widow be paid the remainder of the distribution due and owing.