Asarco looks to settle retiree claim class action lawsuit

By Caroline Salls

Pittsburgh, Jan. 23 - Asarco LLC requested court approval of a class action litigation retiree claim settlement, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The settlement resolves class action retiree litigation filed in the Arizona District Court by several individuals attempting to protect proposed class members' rights to their retiree benefits.

Under the retiree benefit settlement, premiums will be reduced to $100 per individual not yet eligible for Medicare and $200 maximum per family from $220 to $430 per month.

Medicare eligible employees will pay $75 per month for individuals and a $150 maximum per family.

Annual deductibles will be reduced to $200 for an individual and $400 for a family from $500 for an individual and $1,000 for a family.

Out-of-pocket maximum drug costs that retirees have to pay has also been reduced to $2,000 for the entire family from $5,000 per family and $2,500 per individual.

The changes will have a Jan. 1 effective date, and retirees will be reimbursed for higher deductibles they may have already paid.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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