“This settlement is a hard-won victory and will bring much-needed financial relief to thousands who dedicated their lives to serving their communities,” said William Alvarado Rivera, senior vice president of litigation at AARP Foundation. “This agreement helps restore critical retirement funds, without further delay and expense.”
Retired ministers described having to return to work or depending on their children for financial security, which was not how they envisioned spending retirement, as a result of the lost funds. Beneficiaries of ministers who died are also awaiting payment.
The Rev. J. Edgar Boyd, a leader of the AMEs for Justice and Accountability group, said he has heard from retired clergy whose economic situations have been “imperiled tremendously” in the wake of the retirement fund losses. In an interview Tuesday, he said the funds available through the settlement amount to about $39 million, not including interest. That’s because the $60 million total is reduced by the attorneys’ fees and an additional $200,000, as each of the 10 named plaintiffs will receive $20,000 as a service award.
The parties involved in the settlement, which include AME Church defendants such as its Council of Bishops, Department of Retirement Services and General Board, as well as Newport, have not admitted liability. However, the AME Church has long declared it desired to make “participants whole.”
Anderson said that day is still in the future.
“However, to be clear, the present settlements will not make the retirees whole,” he wrote after stating in his order that the settlement calls for retirees to “recover proportionally what he or she invested.”
“The litigation continues with that goal in mind and with the assurance of Plaintiffs’ counsel that claims against all other defendants in this matter are being actively pursued,” he wrote.
This article originally appeared here.