Published
October 21, 2023
If you began collecting a Pactiv pension while married, your joint and survivor annuity may have been calculated with a faulty formula that leaves you with less than you earned — and you may have a claim.
Former Pactiv Employees Receiving Pension Benefits May Be Owed Compensation
Did you start receiving a pension from Pactiv? Were you married when your benefits started? If so, you may be receiving pension benefits that are too low and you may have a claim.Generally, retirees who get a pension are entitled to a monthly payment for the rest of their life, which is called an annuity. Retirees can choose to receive their pension benefits as an annuity just for them or they can choose an annuity with a “survivor benefit” — which continues the monthly payments to a spouse after the retiree dies. For married retirees, the default option is a “survivor benefit.” To convert a normal annuity to a survivor benefit annuity, plans use complicated formulas based on life expectancies and interest rates.
Pactiv may have been using a faulty formula to calculate survivor benefit annuities leaving retirees (and their spouses) with less money than they should receive.
Status
Active Investigation
Attorneys reviewing potential pension miscalculation claims
Who May Qualify
Married retirees
Began a Pactiv joint and survivor annuity while married
Estimated Recovery
Varies
Proof Required
Yes
What is the survivor benefit annuity?
A survivor benefit annuity, also known as a joint and survivor annuity, is a type of retirement income option that provides regular payments to two individuals throughout their lifetimes. This option is commonly offered in pension plans, retirement accounts, or annuities.With a survivor benefit annuity, the primary annuitant (usually the retiree or account holder) receives regular payments for their lifetime. Upon the death of the primary annuitant, the surviving beneficiary (often a spouse or another designated individual) continues to receive a reduced portion of the payments for the rest of their life.
The percentage of the original payment that the survivor will receive after the primary annuitant's death is predetermined and can vary depending on the specific terms of the annuity contract or pension plan. For example, a common option might be a 100% joint and survivor annuity, where the surviving beneficiary receives the full amount that the primary annuitant was receiving. Alternatively, there might be a 50% joint and survivor annuity, where the surviving beneficiary receives half of the original payment after the primary annuitant's passing.
The survivor benefit annuity provides a measure of financial security for the surviving spouse or beneficiary, ensuring they continue to receive income even after the primary annuitant's death. However, this security comes at a cost since the original payments might be lower compared to other annuity options that do not offer survivor benefits.
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