Hughes Salaried Retirees Action Committee Peter Formo Richard E. Miller Norman C. Rigby v. Administrator of the Hughes Non-Bargaining Retirement Plan

72 F.3d 686, 95 Cal. Daily Op. Serv. 9584, 95 Daily Journal DAR 16685, 19 Employee Benefits Cas. (BNA) 2269, 1995 U.S. App. LEXIS 35262, 1995 WL 740011
Court of Appeals for the Ninth Circuit·Decided December 15, 1995·No. 93-55384·Published·Cited by 52 cases

Opinions

Dissent by Judge PREGERSON.

WILLIAM A. NORRIS, Circuit Judge:

This appeal presents two questions:

(1) whether § 104(b)(4) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), 29 U.S.C. § 1024(b)(4), requires a plan administrator to furnish individual participants upon request with the names and addresses of other plan participants. We hold that it does not because such a list is not an “instrumente ] under which the plan is established or operated,” id,.;

(2) whether a plan administrator has a general fiduciary duty under ERISA § 404(a)(1)(A), 29 U.S.C. § 1104(a)(1)(A), to furnish individual participants with the names and addresses of other plan participants. We hold that it does not because this information is not related to “providing benefits to participants and their beneficiaries [or] defraying reasonable expenses of administering the plan,” the exclusive purposes for which the plan administrator may discharge its duties, id.

I

Background

Plaintiffs are three retirees (the “Retirees") who receive defined pension benefits from the Hughes Non-Bargaining Retirement Plan (the “Plan”). They are members of a self-appointed committee called the Hughes Salaried Retirees Action Committee, an organization that is also a named plaintiff. The Plan has some 60,000 participants, of whom some 10,000 are retirees.

The Retirees brought this action under ERISA to compel the Plan administrator (the “Administrator”) to furnish them with a list of the names and addresses of all retired participants of the Plan so the Retirees can “communicate with them about matters of concern to all retired participants regarding their pensions-” Am.Compl. ¶ 1. In particular, the Retirees say they want to communicate with other retirees about Hughes’s allegedly “unlawful use of excess Plan assets for the sole purpose of meeting Hughes’ funding obligations” and “to gain support for their efforts to obtain increased benefits through negotiation or if required, litigation, as well as to monitor the Plan.”1 Id. at ¶ 10.

The district court dismissed the complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. A three-judge panel of our court reversed.2 Hughes [689] Salaried Retirees Action Comm. v. Administrator of the Hughes Non-Bargaining Retirement Plan, 39 F.3d 1002 (9th Cir.1994). A majority of the active judges of the court voted to rehear the case en banc, 53 F.3d 1090 (9th Cir.1995), and we now vacate the panel’s opinion and affirm the judgment of the district court dismissing the complaint for failure to state a claim upon which relief may be granted.

II

ERISA § 104(b)(4)

We first consider the Retirees’ claim that the Administrator must furnish them with the names and addresses of retired Plan participants because this information is an “instrumentf ] under which the plan is established or operated” within the meaning of ERISA § 104(b)(4). Am.Compl. ¶¶ 18-20. Section 104(b)(4) provides:

The administrator shall, upon written request of any participant or beneficiary, furnish a copy of the latest updated summary plan description, plan description, and the latest annual report, any terminal report, the bargaining agreement, trust agreement, contract, or other instruments under which the plan is established or operated.' The administrator may make reasonable charge to cover the cost of furnishing such complete copies.

29 U.S.C. § 1024(b)(4) (emphasis added). According to the Retirees, the requested list of names and addresses falls within the statute because the Plan could not operate without it.

The district court, in rejecting the Retirees’ interpretation, explained:

Such an interpretation so strains the meaning of [§ 104(b)(4) ]’s language that it is impossible to conceive of any documents even tangentially related to an employee benefit plan which would not fall within its scope. Moreover, if there are limits, there is no way that [the Retirees’] reading of the statute would allow a plan administrator to know what they are. Such a result would subvert the intent of Congress to provide “detailed and uniform guidance” as to what information must be furnished to plan participants.

Order of Dismissal, filed July 9, 1991, at 6.

We agree with the district court that the Retirees’ interpretation of § 104(b)(4) would “strain the meaning” of the section. The district court reasoned:

Statutory construction of ERISA “‘must begin with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose.’ ” Metropolitan Life Ins. Co. v. Massachusetts, 471 U.S. 724, 740 [105 S.Ct. 2380, 2389, 85 L.Ed.2d 728] (1985) (quoting Park ‘N Fly, Inc. v. Dollar Park & Fly, Inc., 469 U.S. 189, 194 [105 S.Ct. 658, 661, 83 L.Ed.2d 582] (1985)). Following this approach, a list of plan participants cannot possibly be considered an instrument “under which the plan is established or operated.” The plain language of the statute limits the universe of documents falling within that phrase to documents similar in nature to those specifically identified, which describe the terms and conditions of the plan, as well as its administration and financial status. While this Court need not define precisely those documents falling under •that provision, it is clear that a list of plan participants does not. Obtaining such a list provides participants with absolutely no information whatsoever about the plan, and therefore ERISA neither requires nor contemplates its disclosure.

Id. at 627.

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Hughes Salaried Retirees Action Committee Peter Formo Richard E. Miller Norman C. Rigby v. Administrator of the Hughes Non-Bargaining Retirement Plan, 72 F.3d 686, 95 Cal. Daily Op. Serv. 9584, 95 Daily Journal DAR 16685, 19 Employee Benefits Cas. (BNA) 2269, 1995 U.S. App. LEXIS 35262, 1995 WL 740011 (9th Cir. 1995).

72 F.3d 686 (Hughes Salaried Retirees Action Committee Peter Formo Richard E. Miller Norman C. Rigby v. Administrator of the Hughes Non-Bargaining Retirement Plan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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