AK Steel settles, will pay more than $175 million to retirees — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

AK Steel settles, will pay more than $175 million to retirees

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AK Steel, based in West Chester outside Cincinnati, has settled a lawsuit brought by retirees after the company announced it would cut some retirees’ health benefits and begin charging premiums for others.

The suit was brought by workers who retired before 2006 from an AK Steel plant in western Pennsylvania. The workers claimed the changes violated various collective bargaining agreements that promised the company would provide health benefits throughout their retirement.

Under the settlement, AK Steel will spend $87.6 million to provide retiree benefits through 2014 and $91 million to provide benefits after that.

In a statement, the steelmaker called the settlement fair for both sides.

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