Monper v. Boeing Co.

104 F. Supp. 3d 1170, 60 Employee Benefits Cas. (BNA) 2049, 2015 U.S. Dist. LEXIS 64818, 2015 WL 2250419
CourtDistrict Court, W.D. Washington
DecidedMay 13, 2015
DocketCase No. 2:13-cv-01569-RSM
StatusPublished
Cited by4 cases

This text of 104 F. Supp. 3d 1170 (Monper v. Boeing Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monper v. Boeing Co., 104 F. Supp. 3d 1170, 60 Employee Benefits Cas. (BNA) 2049, 2015 U.S. Dist. LEXIS 64818, 2015 WL 2250419 (W.D. Wash. 2015).

Opinion

ORDER GRANTING MOTION TO DISMISS AMENDED COM-. PLAINT IN PART

RICARDO S. MARTINEZ, District Judge.

I. INTRODUCTION

This matter comes before the Court upon Defendants’ Motion to Dismiss Amended Complaint for Failure to State a Claim. Dkt. # 32. The Court heard oral argument on the Motion and has considered the briefs, supporting exhibits, and supplemental authority submitted by both parties. Being fully apprised and for the reasons set forth herein, the Court grants in part and denies in part Defendants’ Motion to Dismiss.

II. FACTUAL BACKGROUND

This case arises from misinformation about pension benefits communicated to Plaintiffs Gene Monper, Brett Lynch, and Mark Veturis, which allegedly induced them to transfer from the McDonnell Douglas Corporation (“McDonnell Douglas”) in California to the Boeing Company (“Boeing”) in Washington. Plaintiffs assert that in the autumn of 2007, they were collectively told seventeen times in six separate conversations by recruiters and human resources (“HR”) personnel that their pension benefits would not change or be reduced upon transfer. When they did transfer, Plaintiffs discovered that their early retirement benefits would in fact be significantly reduced, contrary to their pri- or understandings but in accordance with the terms of written plan documents they received only after their move to Washington.

A. Retirement Plans

Prior to transferring, all three Plaintiffs were members of United Automobile, Local 148, through which they were enrolled in and accrued benefits under Hourly West, f/k/a/ the Employee Retirement Income Plan of the McDonald Douglas Corporation (the “Hourly West Plan”). In December 2009, McDonnell Douglas merged into Boeing, which assumed sponsorship of the Hourly West Plan. Under this plan, participants with at least ten years of vesting service are eligible to receive early retirement benefits when re[1174]*1174tiring as early as age 55. Participants who have attained 30 or more years of “Aggregate Benefit Service” — that is, years of benefit service earned under- the Plan— receive unreduced benefits upon early retirement from age 55. If fewer than 30 years of Aggregate Benefit Service have been attained, early retirement benefits at ages 55 — 61 are paid at a reduced level, and then in full from age 62. In addition, participants who have attained 30 years of Aggregate Benefit Service , receive an “Early Retirement Supplement” (“ERS”) when retiring at age 55 in the amount of $550 per month through age 62}i See Amended Complaint (“FAC”), Dkt.. # 25 at ¶¶ 31-43.

All three Plaintiffs,moved from McDonnell Douglas in Long Beach, California to Washington to begin employment- with Boeing prior to attaining 30 years of Aggregate Benefit Service. Upon transfer, Plaintiffs were enrolled in .the Boeing Company Employee . Retirement Plan (“BCERP”), a defined benefits pension plan that provides a different early retirement benefits option. Under the BCERP, participants with at least 10 years of qualifying vesting service may retire as early as age 55. From ages 55 through 59, benefits are paid only at a reduced level, with a participant’s benefits reduced by 2% per year for each year prior to age 60. For example, an employee retiring at age 55 would only receive 90% of his or her normal retirement benefits. See FAC at ¶¶ 44-51. '

All threq Plaintiffs are projected to have attained at least 10 years of qualifying benefit service under the BCERP by age 55, entitling them to obtain reduced early retirement benefits in' addition to those théy áre still entitled to receive ■ under their Hourly West Plans; Plaintiffs will not, however, be eligible to receive unreduced early retirement benefits under the Hourly West Plan. It is undisputed that the terms of the written Hourly West Plan are clear in not allowing beneficiaries to continue to accrue benefits upon transferring to the BCERP.1 FAC at ¶¶ 266, 303, 338. To this extent,, Plaintiffs assert that it was only made known to them that they would be enrolled in BCERP after they moved to Washington, such that they could not have consulted the Plan documents in making their transfer decisions and instead relied on communications with HR representatives and recruiters.

As a result of their transfer and the limitations on dual accrual, Plaintiffs allege that they will face significantly diminished total benefits in early retirement as compared to what they would have received under the Hourly West Plan had they continued to accrue qualifying service. All three Plaintiffs would have obtained at least 30 years of Aggregate Benefit Service by age 55' had they remained under the Hourly West Plan, entitling them to full early retirement benefits and ERS payments. Plaintiffs estimate that they will lose between $1,284.61 and $2,166.06 per month, respectively, in early retirement benefits as a result of their transfer, with the exact amount dependent on their selected age of retirement and the method [1175]*1175of benefits calculation. See FAC at ¶¶ 246, 293, 322.

B. Communications of Misinformation

In 2007, Boeing was in severe need of employees at its Seattle-area facilities to assist in the delayed rollout of its Dream-liner aircraft. Plaintiffs assert that Boeing sent high-level recruiters from Seattle to Long Beach “with a mandate to get employees to move to Washington and to do whatever it took to get them there.” FAC at ¶ 72. As part of this mandate, Plaintiffs assert that Boeing-imposed quotas on the number of experienced employees that recruiters were required to induce. Id.

Recruiters Gary Irons, Mike Query, Kim Martin, and Tommy Small, and HR representative Cindy Cuto are each alleged to have separately communicated to Plaintiffs that their early retirement benefits would be unaffected by their transfers. For instance, Defendant Irons, Senior Manager of Production Flight Test Operations, told Monper and others in attendance at a 2007 Long Beach job fair that they would have “nothing to lose” by moving to Seattle and that their early retirement benefits would “not change or be affected.” Id. at ¶ 121A. Recruiting Specialist Martin and Boeing Senior Manager Small are alleged to have silently acquiesced in these statements. Id. at ¶¶ 142A, 153A. Later that autumn, Defendant Irons, together with Manager of Flight Test Operations, Defendant Mike Query, interviewed Lynch for a flight mechanic position at a separate Boeing job fair. Despite the fact that Hourly West does not permit dual accrual for BCERP participants, Irons allegedly- told Lynch that he would “keep accruing time” under the Hourly West Plan upon his transfer and that his Hourly West benefits would-“eontinue to grow” while he worked in Seattle. Id. at ¶ 121B. Defendant Query is alleged to have silently acquiesced in these statements. Id. at ¶ 131A Human Resources Representative Cindy Cuto, a McDonnell Douglas employee, was Lynch’s HR representative in Long Beach and is alleged to have confirmed that his Hourly West benefits would “continue to grow” upon his transfer. Id. at ¶ 164.

Several unnamed’ HR representatives are also alleged to have uniformly assured Plaintiffs that they would continue to accrue early retirement benefits under the Hourly West Plan at the same time that they accrued benefits under the BCERP.

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Bluebook (online)
104 F. Supp. 3d 1170, 60 Employee Benefits Cas. (BNA) 2049, 2015 U.S. Dist. LEXIS 64818, 2015 WL 2250419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monper-v-boeing-co-wawd-2015.