News Notes: Use Caution When Advising Employees About Retirement Benefits

Carol Becker, a terminally ill Eastman Kodak Co. employee, put off taking early retirement in favor of going on long-term disability. She planned to retire a few months later, but then died just three days before her retirement date. Her husband sued Kodak, claiming it violated the Employee Retirement Income Security Act because a company benefits counselor (and the summary plan description of benefits) failed to notify Becker that she would have received a $212,000 lump sum pension payment if she retired before she died. Instead, because Becker passed away before retiring, her husband received only a $100 monthly annuity. A federal court of appeal has now ruled in her husband’s favor.3 This decision reinforces how critical it is to provide employees with accurate information about various retirement-related benefit decisions and to suggest that workers seek expert advice when appropriate.