- In August, retiree Mark Potter suddenly stopped receiving his pension payments from Ruby Tuesday.
- Documents show that Ruby Tuesday advised its trustee, Regions Bank, to stop paying pensions to at least 112 retirees on July 21, months before declaring insolvency on September 2.
- But the agreement between Ruby Tuesday and Regions stated the chain had to notify the bank of its insolvency before it could cease pension payments.
- On September 28, Regions filed a lawsuit against Ruby Tuesday, asking a court to determine whether the chain’s actions were legal.
- In the meantime, Potter and the other retirees are stuck in pension purgatory, with no idea of when or if their payments will resume.
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Mark Potter did everything he was supposed to.
After 28 years working his way up the ladder at Morrison’s Cafeterias to become a district manager, Potter retired in 1999 with the knowledge that his pension plan was a lifelong one.
Morrison’s Cafeterias had acquired Ruby Tuesday in 1982 before splitting into three companies: Ruby Tuesday, Morrison Healthcare, and Morrison’s Fresh Cooking — a cafeteria company that was later bought by rival chain Piccadilly Restaurants. When Morrison’s split in 1996, the three entities entered a legal agreement to divide their retirees’ pensions, James Holland, a former Morrison’s Cafeterias vice president, told Business Insider.
Holland also explained that if one company filed for bankruptcy, the other companies assume responsibility for its portion of the pension payments. For example, when Piccadilly filed for bankruptcy in 2004, Ruby Tuesday and Morrison’s Healthcare split Piccadilly’s share of the payments.
In August, Potter’s pension payments from Ruby Tuesday suddenly stopped coming. He called Ruby Tuesday repeatedly to ask why,