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Former Employees Allege Pension Cuts During Corporate Restructuring

Philadelphia employment lawyers handle employee pension issues.Talen Energy is a privately-owned independent power producer that serves commercial and industrial customers in New Jersey, Pennsylvania, Maryland, Delaware, Ohio, and the District of Columbia. In 2016, the company was bought by Riverstone Holding, a New York City-based private investment firm that specializes in the energy industry. According to a federal lawsuit, three former senior engineers from Talen claimed that the company failed to pay them their full pensions after Riverstone Holding took over the company.

All three former employees worked at PPL’s Brunner Island power plant in York County. PPL’s energy supply division became Talen Energy, which continued to own Brunner Island. When Talen Energy was launched on June 1, 2015, the company inherited PPL’s pension provisions. According to the attorney, who represents the former employees, Talen and the senior executives responsible for administering the pension did not pay the men their full pensions required by the Employee Retirement Income Security Act (“ERISA”). Court documents claimed that Talen Energy owes them approximately $750,000 in pension costs.

ERISA Anti-Cutback Rule

ERISA includes an anti-cutback rule, which states that employers may not reduce or eliminate early retirement pension benefits that employees have accrued over time. When Talen was taken over by Riverstone Holdings, the then-employees lost their jobs. Since they were all under the age of 60, they were entitled to their full pensions, as well as pension supplements for losing their jobs.

However, Talen executives were allegedly responsible for reducing the retirement payment for each of the three former employees. They also supposedly omitted several provisions for full pensions and supplements that had been in PPL’s pension plan. As a result, they would have been compensated thousands of dollars less than they were legally entitled to receive. According to the workers’ attorney, Talen retained employee benefit plans after the spin-off from PPL. This key piece of information will be presented in court.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Handle Employee Pension Issues

If you did not receive your full pension from your employer, do not hesitate to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Federal law states that employers may not withhold pension benefits from eligible employees. We will protect your rights and work tirelessly to secure the full pension amount to which you are entitled. We will not stop fighting for you until you are completely satisfied. To schedule an initial consultation, call us today at 215-574-0600 or contact us online. Located in Philadelphia, we serve clients throughout South Jersey, Pennsylvania, and New Jersey.