Con Ed retirees sue, saying buyout was a costly sellout
New York Con Ed employees who took an early retirement buyout have filed a class-action lawsuit alleging the deal was nothing more than a loan-shark scheme.
The lawsuit charges that employees who accepted the deal, which borrowed against their pension funds, were told nothing about interest that would be charged. But when they saw their pension checks plummet, they realized the deal included hefty interest deductions from their checks. One retiree said he discovered that his monthly pension benefit had dropped from $3,500 to $1,900.
The retirees’ attorney called it “the biggest loan scam ever.” Con Ed did not comment on the filing.