CITGO $10 Million ERISA Class Action Settlement

If you are a participant or beneficiary of the Retirement Plan of CITGO Petroleum Corporation and Participating Subsidiary Companies or the CITGO Petroleum Corporation Salaried Employees’ Pension Plan, you may be eligible to claim increased pension benefits from a class action settlement.

CITGO has agreed to pay $10,000,000 to settle a class action lawsuit for allegedly using outdated actuarial assumptions that affected pension benefit calculations.

Who are the class members?

The class includes:

• Participants and beneficiaries with a Benefit Commencement Date between January 1, 1995, and January 1, 2018.
• Those receiving a Joint and Survivor Annuity or a preretirement survivor annuity that is less valuable than it would be if calculated using updated actuarial assumptions.

The class does not include:

• Individuals whose benefits were calculated by assumptions other than the 1971 Mortality Table and eight percent interest rate.
• Individuals who received a Subsidized Pre-Retirement Survivor Annuity.

How much can class members get?

• For those who started pensions on or after August 3, 2015: Benefits will be increased to approximately 87.4% of the estimated damages.
• For those who started pensions before August 3, 2015: Benefits will be increased to approximately 20% of the estimated damages due to statute of limitations risks.

Class members will automatically receive increased benefits if the settlement is approved. No additional action is required.

$10 Million settlement fund

The settlement fund of $10,000,000 will cover increased pension payments for class members. Additionally, up to $4.75 million will be allocated for attorneys’ fees, expenses, and class representative service awards, paid separately by CITGO.

When is the CITGO ERISA Settlement payout date?

The Court will hold a Final Approval Hearing on January 27, 2025. If approved, increased payments will be calculated and distributed to class members approximately 3-4 months afterwards

Why is there a class action settlement?

The lawsuit was filed because CITGO allegedly used outdated actuarial assumptions for pension calculations, resulting in lower benefits for class members. The settlement avoids the uncertainties and expenses of further litigation.