Class Action Lawyer For Public Pensions
Public Pension Claim Lawsuits
When preparing to retire, the financial security of retirement plans often comes to mind. But many present and future retirees lack a true understanding of their pension-related rights.
This may lead to serious financial consequences, particularly within the area of public pension law.
Public employees such as those who serve in governmental or municipal positions often trade the higher wages of the private sector for greater financial security in retirement. But what happens when those retirement benefits have been mismanaged? It can result in pensions being cut, a denial of Cost of Living Adjustments (COLAs), or even the loss of years of earnings when defined contribution funds are overcharged by financial managers.
These are all instances that may merit considering a class action lawsuit. Working through this type of class action lawsuit can seem daunting, but J.J. Conway Law possesses the experience to guide you through this process as the firm has handled such cases in states throughout the U.S.
Private Versus Public Pensions
What Is a Pension Plan?
Possible Difficulties of Public Pensions
Private Versus Public Pensions
There are two different types of retirement plans: those of the private sector and those for public (or governmental) employees.
Private Pensions
Private pension plans are provided by private employers. These may require a larger contribution by the employee compared with public pensions. Many plans offer a defined contribution plan, like a 401(k), meaning that the money deposited into your retirement account each year changes based on the returns received in the stock and bond markets as well as the size of the deposits. Owing to this factor, most private pensions lack a guaranteed income.
Public Pensions
Public pension plans, meanwhile, come from those working through the federal, state, and local governments, including employees such as firefighters or members of law enforcement.
This pension type involves the use of defined benefit plans or hybrid plans, meaning that the amount on the retirement check arises from a formula based upon the number of years worked as well as the salary while doing so. Unlike private pensions, this method means you are to be guaranteed some form of retirement income.
While they may appear superior to benefits to those of company pensions because they offer early retirement benefits, coverage for a surviving spouse, and medical insurance benefits, there are drawbacks.
What is a Pension Plan?
Pension plans serve as a promise on the behalf of employers that their employees will receive a defined amount of compensation after their retirement. Each pension plan is unique to each employer, but they often follow the same set of standards. Given financial constraints, many pension plans now involved a shared-risk or hybrid formula where both the employer and the employee contribute to the claim.
Normally, the pension income originates from a percentage of your salary while working, and employees don’t engage in the management aspect of these funds. The plans are managed by trustees and outside financial advisors.
While this may remove some responsibility from the employee, it does open up opportunities for unscrupulous financial practices. When that happens, a larger group of people suffer from the same wrongdoing, whether it be a physical or financial one, one individual or a small group possesses the ability to sue on behalf of the entire group.
When a larger group of people suffer from the same wrongdoing, whether it be a physical or financial one, one individual or a small group possesses the ability to sue on behalf of the entire group.
Possible Difficulties of Public Pensions
The area of public pension law is emerging. But many issues have been identified including:
- Overcharging for management of defined contribution funds like 403(b) funds
- Trustee mismanagement and overspending on trips and lavish vacations for “seminars”
- Excessive fees charged by hedge funds and private equity fund managers
- Fraud and corruption involving the use of retiree trust funds
The Class Action Lawsuit
When a larger group of people suffer from the same wrongdoing, whether it be a physical or financial one, one individual or a small group possesses the ability to sue on behalf of the entire group.
This is known as a class action lawsuit, and a successful lawsuit results in financial relief not only for the individual but also for the members of the wronged party. Such a lawsuit can be applicable to those struggling with public pension compensation issues.
How can J.J. Conway Law Help?
With nearly 25 years of experience, we know the intricacies of public pensions. That knowledge will help us guide you, so you can receive the benefits that you have earned.
We know that following through with a lawsuit seems daunting but know that you have our full support if we take on your case. We focus on helping families and retirees secure what they have earned, helping to move the law not where it is currently, but where it needs to go. Contact us today for an initial consultation on the phone at 313-961-6525, or through our website.
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