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ALL » Topics » VI. CALCULATION OF PAYMENTS TO CLASS MEMBERS

This excerpt taken from the ALL 10-Q filed Nov 1, 2005.

VI.           CALCULATION OF PAYMENTS TO CLASS MEMBERS

 

The settlement administrative costs, incentive awards to each of the Class representatives, Referee costs, attorneys’ fees and costs and other associated expenses and a reserve for “Late Claims” (discussed below) shall be subtracted from the potential maximum settlement amount.  The funds remaining after payment of these expenses are designated as the Potential Gross Individual Settlement Proceeds, which is the amount available for distribution among Class Members who submit timely claims.  The calculation of each Class Member’s share of the funds available for distribution is as follows:

 

1.             The Potential Gross Individual Settlement Proceeds will first be allocated among the calendar years in the Class Period (from November 27, 1996 through December 31, 2004).  Each year’s allocation shall be a percentage equal to (i) the total compensation to all Class Members during that year plus imputed interest calculated at 7% per annum simple interest through December 31, 2004, divided by (ii) the sum of all such compensation and all such imputed interest for all calendar years in the Class Period.

 

2.             A Class Member’s total compensation for a calendar year shall be the amount reported in Box 1 of the member’s
W-2 form for that year (prorated to the nearest full month for any year in which a Class Member was not actively employed in the Class for the entire year).  Every Class Member who was employed as a catastrophe (“CAT”) adjuster at any time during each year shall have his or her annual gross compensation for that year adjusted as set forth in paragraph 3.

 

3.             Each Class Member shall be entitled to an “Individual Percentage” of each calendar year’s allocation on a year-by-year basis based on that Class Member’s compensation as a Class Member during each year.  That percentage shall equal (i) the gross compensation earned by that Class Member for the months in each calendar year that such Class Member worked as a Class Member divided by (ii) the total gross compensation paid to all Class Members for all of the months worked by Class Members during such year of the Class Period.   Every Class Member who was employed as a CAT adjuster at any time during each year shall have his or her annual gross compensation for that year increased by a factor equal to 60% times the ratio of the number of days that Class Member worked as a CAT adjuster that year over 365.  It is

 

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Sekly v. Allstate

Notice Of Class Action Settlement

 

understood that Individual Percentages for Class Members who worked as CAT adjusters in any year will be increased, and the Individual Percentages for Class Members who did not work as CAT adjusters for that year shall be correspondingly reduced.  (For purposes of 1996 only, any person who was a Class Member for at least two weeks between November 27 and December 31, 1996 shall be credited with one month, and CAT adjuster duty shall not be considered.)  The Individual Percentage so determined for each Class Member shall then be multiplied by the Potential Gross Individual Settlement Proceeds allocated to that calendar year to determine the allocations to Class Members for that calendar year.  Of the total amount so allocated, the percentage allocable to imputed interest shall be interest and the remainder shall be, in the appropriate percentages, wages (subject to withholding) and employer-paid payroll taxes on such wages.

 

Example:  If a Class Member worked during a year in the Class Period and earned a total of $1, and the total gross compensation paid out to Class Members during that year, after adjustments for CAT duty, was $100, that Class Member would be entitled to 1% (1/100) of the Potential Gross Individual Settlement Proceeds allocated to that year.

 

4.             The amount that each Class Member is entitled to receive – the “Individual Settlement Award” – equals the sum of his or her Individual Percentages of each year’s allocation.  The proportion of each year’s allocation that represents imputed interest shall be interest income to the Class Member.  The portion of each Class Member’s Individual Settlement Award that is not interest shall be divided by the appropriate factor to determine the Class Member’s gross wages (subject to withholding) and the balance shall be the employer-paid payroll taxes with respect to such gross wages.

 

5.             The total of Individual Settlement Awards claimed by Settlement Class Members shall be the “Claimed Settlement Amount.”  If each and every Class Member submits a timely and properly completed Claim Form, then the Claimed Settlement Amount shall equal the Potential Gross Individual Settlement Proceeds and all Individual Settlement Awards shall be distributed to all Settlement Class Members.  If all Class Members do not submit timely and properly completed Claim Forms, Allstate may pay less than the Potential Gross Individual Settlement Proceeds, as follows:

 

The value of the Individual Settlement Award for a Class Member who does not submit a timely Claim Form shall be determined by the Administrator and allocated to the “Unclaimed Amount.”  The first $6 million plus one-half of any amount over $6 million in the Unclaimed Amount shall be distributed to Class Members who submitted timely Claim Forms on a pro rata basis where the numerator equals each Settlement Class Member’s Individual Settlement Award and the denominator equals the sum of the Individual Settlement Award for all Settlement Class Members.   Each allocation shall be interest, wages (subject to withholding) and employer-paid payroll taxes on such wages in the same proportions as each Settlement Class Member’s Individual Settlement Award.  The balance of the Unclaimed Amount (one-half of any amount over $6 million) shall be retained by Allstate.

 

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