Kadane v. Hofstra University

682 F. Supp. 166, 9 Employee Benefits Cas. (BNA) 1908, 1988 U.S. Dist. LEXIS 2352, 1988 WL 36039
CourtDistrict Court, E.D. New York
DecidedJanuary 19, 1988
DocketNo. 85 CV 2652
StatusPublished
Cited by3 cases

This text of 682 F. Supp. 166 (Kadane v. Hofstra University) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kadane v. Hofstra University, 682 F. Supp. 166, 9 Employee Benefits Cas. (BNA) 1908, 1988 U.S. Dist. LEXIS 2352, 1988 WL 36039 (E.D.N.Y. 1988).

Opinion

MEMORANDUM AND ORDER

PLATT, District Judge.

Both plaintiff and defendant move this Court for summary judgment pursuant to Federal Rule of Civil Procedure 56. Each party contends that there are no genuine issues of material fact and that each is entitled to judgment as a matter of law.

Following submission of briefs by both sides and oral argument on the motions of July 10, 1987, the Court requested oral testimony to clarify several questions of fact. This Court heard testimony on September 9, September 16, and November 6, 1987, and then requested briefs on the issues of the meaning of modification, benefits and ineligibility under the applicable statute and regulations. Those briefs were duly submitted.

In his complaint, Kadane alleged that Hofstra University (Hofstra or the University) violated the Age Discrimination in Employment Act of 1967 (ADEA), 29 U.S. C. §§ 621-34 (1982), and the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C.A. §§ 1001-461 (West 1985 and Supp.1987), by failing to notify him that it discontinued payment of employer contributions to the Hofstra pension plan when Kadane reached the age of 65. Kadane also asserted several State claims, which he has since withdrawn. Plaintiff has not addressed the ADEA claim in his motion for summary judgment and has failed to respond to defendant’s contention that the cessation of benefits at 65 is permissible under ERISA and, consequently, there is no violation of the ADEA, so that claim is deemed conceded. Therefore, his only remaining federal claim is, succinctly stated, that Hofstra has violated ERISA by failing to adequately disclose that Kadane’s “benefits” under the Plan were to cease at age 65 regardless of the fact that he continued to work beyond such date or to give notice to him that the Plan had been modified or changed in that respect, and, consequently, he was caused to lose benefits under or become ineligible to participate in the Plan.

[168]*168FACTS

David Kadane was employed by Hofstra University as a full time faculty member at its Law School from September 1970 through the academic year of 1983-84 with the exception of an unpaid leave in the Fall Semester of the 1981-82 academic year. He was granted tenure in 1975.

Prior to joining Hofstra, Kadane graduated from Harvard Law School in 1936 and practiced law in New York. His practice included seven years at the Securities and Exchange Commission and 21 years (with a two year leave of absence) as General Counsel for Long Island Lighting Company.

As part of its compensation package for its employees, Hofstra maintains a defined contribution employment plan (the Plan) in compliance with ERISA, 29 U.S.C.A. §§ 1001-461 (West 1985 and Supp.1987). All faculty and other employees are eligible to participate in the Plan after one year of employment and 30 years of age. The Plan was initially adopted by Hofstra in 1944. It was codified in 1976 to comply with the newly enacted ERISA. From the inception of the Plan in 1944 to date, Hofstra has made no contributions for employees after they reach 65. It is undisputed that there has been no modification or change in the Plan in this respect whatsoever to date.

Prior to 1976 Hofstra required faculty members to retire by the end of the academic year when they became 65. Age 65 was defined as the “Normal Retirement Age.”1 As had always been the practice, as indicated, Hofstra ceased making Plan contributions on behalf of all employees when they reached 65.

Hofstra amended its Plan in 1976 to allow faculty members to work up to age 68 with the approval of the Hofstra Board of Trustees. Effective in 1979 Hofstra again amended its Plan to allow employees to work until age 70. This amendment changed the mandatory retirement age to conform to amendments to the ADEA, 29 U.S.C. §§ 621-34 (1982). However, Normal Retirement Age under the Plan remained 65 and the University continued to cease making contributions after employees reached that age.

Hofstra communicated these changes in various ways. A Summary Plan Description (SPD), as required by ERISA, was mailed to all participants in the Plan via intra-University mail in 1972, 1982, and 1985. The 1972 and 1982 SPD's stated the Normal Retirement Age. Information about the 1979 amendment to the Plan was distributed in the form of University Policy Series No. 111 to all academic and administrative offices at Hofstra, including the Dean’s Office and the Library at the Law School. This statement asserted clearly that the University would not continue Plan contributions past age 65. The 1979 change in the Mandatory Retirement Age was also indicated in Your Guide to Fringe Benefit Programs at Hofstra University, distributed in March 1982 to all participants in the Plan in individually addressed envelopes via intra-University mail. The Guide also clearly informed participants that University contributions ceased at age 65. This Guide was intended by the University to supplement the SPD. Transcript of Hearing at 128 (Sept. 16, 1987).

The University’s policy of discontinuing Plan contributions at age 65 was a subject of discussion in the 1979 and 1982 collective bargaining negotiations and the primary issue in a 1979 strike by Hofstra faculty belonging to the American Association of [169]*169University Professors (AAUP). The collective bargaining agreements between the University and the AAUP do not specifically cover Law School faculty, but the benefits agreed to during these negotiations are generally adopted by the Law School Committee. The contribution rates to the Plan are determined by the AAUP negotiations. Transcript of Hearing at 157 (Sept. 16, 1987). The 1979 and 1982 Collective Bargaining Agreements specifically stated that no contributions would be made by the University after age 65. After the 1979 strike was settled, the Law School Committee adopted all the fringe benefits in the 1979 agreement, except certain medical benefits. Kadane was on the Law School Committee that negotiated the 1979-82 Law School agreement.

In addition, Hofstra sent each employee an annual Fringe Benefits Report showing anticipated Plan contributions for the next year. These reports were either mailed with an employee’s paycheck or held in the payroll office for employees, such as Ka-dane, whose checks were directly deposited. For Kadane, the Fringe Benefit Reports showed that University contributions ceased beginning in the 1980-81 academic year. TIAA-CREF, the administrator of the Plan also sent annual reports showing combined individual and University contributions. Further, each biweekly pay stub contained information about University and individual contributions.

Kadane became 65 on April 9, 1979. He extended his full-time employment until the end of the 1983-84 academic year when he became 70. Since that time Kadane has been a professor emeritus and has taught one course at Hofstra per semester.2

Kadane claims that he was unaware that Hofstra had ceased contributing to the Plan on his behalf until December of 1984 when he became concerned about inflation. Transcript of Hearing at 17 (Sept. 9, 1987).

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Bluebook (online)
682 F. Supp. 166, 9 Employee Benefits Cas. (BNA) 1908, 1988 U.S. Dist. LEXIS 2352, 1988 WL 36039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kadane-v-hofstra-university-nyed-1988.