Carter v. Pension Plan of A. Finkl and Sons Co., No. 10-3287 (7th Cir. 2011)
Annotate this CaseThe company decided to voluntarily terminate its qualified plan under the Employment Retirement Income Security Act, 29 U.S.C. 1001, but after going through initial statutory steps, realized that it would be too expensive and formally withdrew from the process. During the process, the company amended its plan to provide that if the plan terminated, employees could keep working at the company while still receiving the annuities the company purchased for them. The amendment was made in anticipation of the final step of the statutory termination process, which requires the purchase of private annuities for plan beneficiaries. Employees sued. The district court found that plaintiffs’ ability to receive an annuity while still working is not a protected right under ERISA or the plan's own terms, which protect beneficiaries from amendments that decrease "accrued benefits." The Seventh Circuit affirmed. ERISA only protects certain benefits, and those relevant here are all tied to benefits available at retirement. In any event, the ability to receive an annuity while still working was contingent on the plan terminating, which did not occur.
This opinion or order relates to an opinion or order originally issued on August 3, 2011.
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