MetLife Settles Pension Math Class Action Before Trial

Settlement reached one day before case was set to go to court

Published on Feb. 21, 2026

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Metropolitan Life Insurance Co. and a class of retirees challenging how their pensions are calculated reached a settlement one day before the case was scheduled to go to trial. The trial was slated to begin Tuesday before a federal judge in New York and would have been the first trial in a recent series of cases challenging the actuarial and interest rate assumptions large employers use to calculate certain optional pension formats.

Why it matters

These types of pension calculation cases have had mixed results in court, with judges focusing on whether the assumptions used by employers comply with the Employee Retirement Income Security Act (ERISA). The MetLife settlement avoids a potentially precedent-setting trial outcome.

The details

The class action lawsuit alleged that MetLife used improper actuarial and interest rate assumptions when calculating lump-sum pension payouts, resulting in retirees receiving lower monthly benefits than they were entitled to. The settlement was reached just one day before the trial was set to begin in the US District Court for the Southern District of New York.

  • The trial was slated to begin on Tuesday, February 18, 2026.
  • The settlement was reached one day before the scheduled trial start date.

The players

Metropolitan Life Insurance Co.

A major insurance company that was the defendant in the class action lawsuit over pension calculation methods.

Judge Dale E. Ho

The federal judge presiding over the case in the US District Court for the Southern District of New York.

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The takeaway

The MetLife settlement avoids a potentially precedent-setting trial outcome on the complex issue of pension calculation methods, which have been the subject of growing litigation as retirees challenge the assumptions used by large employers.