Mississippi judge orders 25% reduction to health system retirees' pensions

Nearly 1,000 retirees of Pascagoula, Miss.-based Singing River Health System will see a significant cut in their pension benefits, according to a WLOX report.

Special Judge James Bell issued an order April 13 that reduced the retirees' monthly benefits by 25 percent, effective May 1, according to a letter addressed to beneficiaries signed by court-appointed financial representative Traci Christian. Ms. Christian recommended the cut as it is reportedly meant to make the pension fund last, according to gulflive.com.

Jim Reeves, an attorney for retirees, said of the April 13 ruling in a statement to media outlets: "The cut in benefits was more severe now than it would have been had the settlement been approved without objection. Unfortunately, the drawn-out legal appeals have cost the pension enormously, and every day of delay means less benefits for all pension members. The court recognized that reality."

The SRHS pension fund has been the focus of a legal battle since the health system stopped paying into the pension from 2009-14, according to WXXV. In 2016, District Court Judge Louis Guirola approved a proposed settlement, but attorneys for SRHS retirees appealed that ruling. Subsequently, the U.S. Court of Appeals Court for the Fifth Circuit in New Orleans failed to approve the proposed settlement in 2017, meaning the case headed back to Judge Guirola for reconsideration. The judge approved a settlement this year, but attorneys for retirees have again appealed to the fifth U.S. circuit Court of Appeals in New Orleans, WLOX reports.

 

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