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Widow one of 5,000 in suit against AK Steel over benefits

RELATED: Dispute with AK Steel may cost widow home

By Jessica Lander-Heffner

Staff Writer

Thursday, May 08, 2008

When Mary Clifton's husband died, she didn't realize she was not only losing her partner, but her way of life.

After her husband, Doug, passed away, AK Steel Corp. officials said she was entitled to half of his pension benefit — which totaled $823.66 minus $147.50 — half of her Social Security widow's benefit. In total, Clifton said she should have received $676.16 a month.

"It seemed to be a very simple thing to calculate. That's when they wrote me a letter (stating) it was going to be $217.26," Clifton said. "I don't understand where they got that amount."

According to Rupert Ruppert, a lawyer whose firm is involved a lawsuit with AK Steel over widow pension benefits, the company has been reducing some people's checks by their entire Social Security benefit, regardless if they have earned any income of their own. This practice extends back 15 years, he said.

As a result, Clifton will lose thousands of dollars in income this year, as will almost 5,000 other widows and widowers who may be receiving an incorrect amount, Ruppert said.

Clifton said she has already been forced to return her leased car to save money. She also is considering selling her condo on Jessie's Way in Hamilton, which she said makes her anxious because she will undoubtedly lose money in the sale due to a depressed housing market.

"It's a blow, it's a real shock when you get these facts and your daughter says, 'This is the way it is,'" Clifton said.

"I sat there and I listened and she is telling me my options like, you can get a roommate, you can get a part-time job ... or you can live with your kids."

Although each of Clifton's five children have agreed to let her stay with them, she said she will regret losing her independence by the move. She also fears for the other widows who have no one to turn to.

"You have to stop and think about these people who will be turned out, these people who are used to getting $600 per month and now they are getting $100," Clifton said.

Kim McGucken, Clifton's daughter, has written a letter to AK Steel's general counsel, David Horn, in hopes of spurring some action to prevent her mother from losing her home.

But Alan McCoy, spokesman for AK Steel, said since Clifton is possibly involved in the pension lawsuit, it would be "unethical and inappropriate for AK Steel as the defendant to respond to this letter to that person."

It's the company's position, McCoy said, that there has been no miscalculation, although he said he could not outline how the company was calculating the benefit.

"The plaintiffs argue that we do not correctly calculate the benefit and we disagree and we are defending that position vigorously," McCoy added.

This year, two judges ruled in favor of the widows and widowers. AK Steel has appealed the decisions to the U.S. Sixth District Court of Appeals. Ruppert said his law firm will oppose the appeal.

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