There’s a lawsuit that’s been filed in New York federal court seeking class
action status that some of you may be interested in. I’ve been in touch with
the lawyer who filed it – Eli Gottesdiener, Gottesdiener Law Firm in New York .
Here’s his website: www.gottesdienerlaw.com. He said it’s important that he
hears from as many potential class members as possible. He can be reached at
(718) 788-1500 or email at eli@....

It seems that anyone who hits age 65 who didn’t immediately withdraw their
benefit from the Plan – doesn’t matter how, lump sum or annuity – gets shorted
interest or an actuarial adjustment for the time that they leave their money in
the Plan (while the Plan gets to use it to invest, make money, etc.). The suit
says that’s illegal under ERISA and actually also contradicts the Plan’s terms,
etc.

So if you reached age 65 and had previously stopped working for IBM and didn’t
act right away to pull your money out, the time between the date you reached age
65 and whenever you got around to getting your money, you earned 0 interest.
Seems it also applies if you were still working past the age of 65, except you
get hit with the no-interest thing as soon as you terminate employment for as
long as you delay taking your benefit.

That’s what happened apparently in the case of the plaintiff in the case,
Richard Adams. He worked for IBM for 40 years. He retired at age 67 but didn’t
draw his benefit for over 2 years in part because he believed that the Plan
would continue to credit his account with interest. When he finally took his
benefit at age 69 or so, he was shocked to learn it was the exact same amount as
if he took it 2 years earlier.

Janet Krueger
Rochester, MN