SSA March 12, 2004 Update

March 12, 2004 UPDATE ON MONETARY DISTRIBUTION

On March 12, 2004, Class Counsel forwarded to SSA the remaining gross amounts to be paid to class members. This includes the redistribution of $421,484 of the settlement fund that was unclaimed or waived by class members. We have completed our search for missing class members.

SSA must now make the final payments to class members as soon as possible. In the last distribution, SSA was able to make payments to current employees by the next pay period following the transfer of the data. Absent problems, we anticipate the same this time around. However, SSA has stated that it may take 4-6 weeks to issue all payments (including to non-current SSA employees) after the transfer of the data. The payments could be delayed based on unforeseen complications, but this time frame is our best estimate as of March 12, 2004.

The parties jointly requested that the Administrative Judge authorize the redistribution of the unclaimed portion of funds to the class in accordance with the Settlement Agreement. We await the Judge’s signature on the order and will request that he rule on the motion in short order so that payments to the class are not delayed.

Because this website contains the most current information on the distribution of the Settlement fund, please do not call or email Class Counsel to ask the date of monetary distribution. Class counsel has been made aware that emails, containing inaccurate information regarding the monetary distribution, have been circulated to class members. Please be aware that any communications originating from any source but this website may contain inaccurate information regarding the monetary distribution.

Thank you for your patience.

Initial payments were made to all class members in November 2003, with a few apparent exceptions. We have notified SSA of those class members who claimed that they have not received their first payment. We continue to request updates on the status of these payments and will provide information to the affected class member as soon as we receive information.

Regarding deceased class members, SSA initially cut checks to the deceased class member. SSA will reissue the checks if SSA is provided with a certified copy of the death certificate and certain necessary forms. You may request this form from class counsel. We have forwarded all forms received to SSA. We will continue to seek updates on the status of the reissued checks.

For the payments, there were several instances where, by law, SSA was required to deduct tax levies, child support or bankruptcy charges owed by an individual class member. The payments are all taxed at a flat 27%, in accordance with one of the options permitted by the IRS. We requested that SSA tax the second payments by the alternative method allowed by the IRS, which would likely lead to a lesser amount withheld. SSA did not agree to do so and will also tax the second payment at 27 percent.

Some class members requested corrections to their gross payment amounts. Class counsel, our expert, and, in some instances, SSA, analyzed these requests. Class counsel wrote to each class member who had requested corrections, explaining whether the corrections were adopted or rejected.

The Class Advisory Board was created by the Settlement to act as advocates for the class of African American males at SSA Headquarters. Please click on this link to learn more about the Class Advisory Board. NEW: Class Advisory Board Page.

On January 11, 2002, the class of African-American male employees at the Baltimore headquarters of the Social Security Administration (SSA) entered into a settlement agreement with the agency regarding their class claim of discrimination on the basis of race and sex. On June 11, 2002, the administrative judge granted final approval of the settlement agreement. On April 7, 2003, the settlement agreement became effective pursuant to decision by the EEOC. A copy of the decision is linked below.

Beginning in May 2003, Class Counsel mailed packages to class members eligible for monetary payments under the Settlement Agreement. Additional mailings were made in May 2003 to class members who appeared ineligible for payments. A class member would be ineligible for payment because (1) he left SSA before November 21, 1991, (2) he was in the Senior Executive Service at SSA, (3) he worked at SSA Headquarters for less than a year, or (4) he worked at Headquarters only after January 11, 2002. Class members were afforded an opportunity to contest their status but that time has now expired. Class counsel continued searching for class members through January 31, 2004.

In order to expedite payments to the class, SSA agreed to make two payments of funds so that it could distribute a portion of the money while we still searched for remaining class members. We appreciate SSA’s cooperation in agreeing to make two payments.
When the first payments were made, a portion of the funds was held in reserve to account for payment to class members who were yet to be located and corrections to distributions. The first distribution constituted approximately 50% of the gross amount for each class member; however, this amount may be significantly more or less than 50% of the gross amount once all tabulations are completed. For example, the amount may be less than 50% because of recalculations required by the corrections submitted by class members.