A class action lawsuit was filed in the United States District Court Northern District of Illinois on behalf of all participants in the Exelon Corporation Cash Balance Pension Plan who received a lump sum distribution of their pension benefits between January 1, 2001 and August 19,2006.

The lawsuit alleges that the Plan failed to project the amount in the plaintiff’s notional account attributable to his Service Annuity System benefit as of the date of distribution to his normal retirement age (65) at a rate that did not understate the value of the investment credits promised by the Plan as required by ERISA. If the Plan had determined the plaintiff’s normal retirement benefit by projecting the amount in his notional account attributable to his Service Annuity System benefit as of the date of distribution to age 65 at a rate that did not understate the value of the investment credits, the plaintiff’s lump sum would have exceeded the lump sum he received.  By failing to properly compute the amount of his normal retirement benefit attributable to his Service Annuity System benefit, the Plan failed to provide the plaintiff with a lump sum distribution in an amount equal to the present value of his minimum benefit at normal retirement age.