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Archived News Release--Caution: information may be out of date.

U.S. DEPARTMENT OF LABOR

VETS Press Release: Pension Trust Voluntarily Restores $898,000 to Veterans By Crediting Military Service for Retirement Payments [04/14/1999]

For more information call: (202) 219-5573

In the largest voluntary settlement ever negotiated by the U.S. Department of Labor under the veterans' reemployment rights law, the Electrical Contractors Association and Local 134 IBEW Joint Pension Trust of Chicago has voluntarily agreed to pay approximately $898,000 to 194 plan participants and beneficiaries who had not received credit for their military service when the fund calculated their retirement benefits. The estimated future liability of the plan to the retired veterans will exceed $1 million.

The voluntary agreement between the trustees of the joint pension trust and the department's Veterans' Employment and Training Service came about after Mr. Kenneth Bedgood of Bensenville, Ill., a retired electrician and veteran, discovered that the fund had not credited his military service when calculating his disability retirement benefits. He asked James Harris, assistant state director for veterans' employment and training services in Illinois, to investigate.

Harris worked closely with the fund administrator, the board of trustees, and the fund's legal counsel. He informed them that the Uniformed Services Employment and Reemployment Rights Act requires that veterans, reservists and National Guard members performing authorized military service receive all seniority-based employment benefits that they would have received had they not been away from their jobs. Bedgood's two years and two months of military service should have been included when calculating his retirement benefits.

When apprised of the situation, the fund made a cash payment of $3,640 to Bedgood and increased his monthly pension payment by $80. In addition, the fund contacted its 4,500 retired members to ascertain if they were veterans; 194 responded and were found eligible for cash payments and benefit adjustments. The fund also notified all of its 11,000 active members that any covered military service would be included when calculating their retirement benefits.

"The fund managers's complete cooperation with our enforcement staff shows they value the contributions made by their members who serve our nation," said Secretary of Labor Alexis M. Herman. "I believe that educational outreach is the key to understanding this important law and ensuring voluntary compliance with it."

The Uniformed Services Employment and Reemployment Rights Act guarantees that all members of the uniformed services, including veterans, reservists, and members of the National Guard, will not suffer disadvantages in civilian employment or be denied reemployment rights because of their military active duty or training obligations. The law also prohibits an employer from discriminating in employment or taking any adverse employment action against a person because of their past, present, or future military obligations. The ban on discrimination is broad, extending to most areas of employment, including hiring, promotion, reemployment, termination, and benefits. This provision applies to all employers, public and private, regardless of size.

The Labor Department's VETS investigates employment, reemployment rights, and discrimination complaints under the law. The law covers more than 15 million members of the uniformed services working in the private and public sectors.

VETS maintains an interactive Internet web site which answers many of the most-often asked questions about USERRA. The address is www.dol.gov/dol/vets.

Archived News Release--Caution: information may be out of date.