Richard Herman, Daniel Paule, Larry Arwood v. Central States, Southeast and Southwest Areas Pension Fund, Fred Gegare, Jerry Younger

423 F.3d 684, 35 Employee Benefits Cas. (BNA) 2397, 2005 U.S. App. LEXIS 19363, 2005 WL 2155661
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 8, 2005
Docket03-4023, 04-1375
StatusPublished
Cited by57 cases

This text of 423 F.3d 684 (Richard Herman, Daniel Paule, Larry Arwood v. Central States, Southeast and Southwest Areas Pension Fund, Fred Gegare, Jerry Younger) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard Herman, Daniel Paule, Larry Arwood v. Central States, Southeast and Southwest Areas Pension Fund, Fred Gegare, Jerry Younger, 423 F.3d 684, 35 Employee Benefits Cas. (BNA) 2397, 2005 U.S. App. LEXIS 19363, 2005 WL 2155661 (7th Cir. 2005).

Opinion

RIPPLE, Circuit Judge.

Richard Herman, Daniel Paule, Larry Arwood, Dennis Helvey, William Rose, Michael Krucker, Larry Whitmyer and William Bohan (the “plaintiffs”) brought this action against the Central States Southeast and Southwest Areas Pension Fund *687 (the “Pension Fund”) and several trustees of the Pension Fund (the “Trustees”) for violations of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001 et seq. They believe that their pension payments were reduced in a manner that violates the anti-cutback provisions of the statute. The district court granted the defendants’ motion for summary judgment, but denied the defendants’ motion for attorneys’ fees. See 29 U.S.C. § 1132(g)(1). The plaintiffs appeal the district court’s grant of summary judgment, and the defendants cross-appeal the denial of attorneys’ fees. For the reasons set forth in the following opinion, we affirm the district court in all respects.

I

BACKGROUND

A. Facts

The Pension Fund is a multiemployer pension plan within the meaning of ERISA. The Trustees have discretionary and final authority with respect to the administration of the Pension Fund and the construction of its terms.

This case involves the application of the anti-cutback provisions of ERISA to certain provisions of the plan governing the Pension Fund that deal with prohibited unemployment. The plaintiffs are participants of the plan who believe that their pensions were reduced by application of the reemployment provisions of the plan in a manner that violates the anti-cutback provisions. At the outset, therefore, we shall set forth the provisions involved.

On March 13, 2002, the Trustees amended the terms of the plan (the “March 2002 amendments”). These amendments became effective on July 1, 2002. For ease of reference, we shall refer to the plan as it existed before the March 2002 amendments as the “Old Pension Plan” and to the plan as modified by the March 2002 amendments as the “New Pension Plan.”

1. Prohibited Reemployment

At all relevant times, the plan has prohibited pensioners from working in prohibited reemployment. The plan defines “Prohibited Reemployment” as:

(1) Employment in any position, including a managerial or supervisory position, by a Contributing Employer ...; or
(2) Employment by an employer, other than a governmental agency, in any position covered by a Teamster Contract between that employer and any affiliate of the International Brotherhood of Teamsters; or
(3) Employment in any position, including a managerial or supervisory position and including self-employment, but not including government employment, either in the same industry in which the Participant or Pensioner earned any Contributory Service Credit while covered by the Pension Fund, or in any other industry if the Participant or Pensioner is in the same job classification as are other Participants then employed by a Contributing Employer located within the same standard metropolitan statistical area [ (“SMA”) ].

R.68, Ex.D at 58-59. 1 The New Pension Plan employs the term “Teamster Indus *688 try Reemployment,” R.68, Ex.H at 65, to cover the same activities that were termed “Prohibited Reemployment” under the Old Pension Plan, R.68, Ex.D at 58-59.

2. Reimbursement of Benefits Paid During Prohibited Reemployment

a. Under the Old Pension Plan

Under the Old Pension Plan, pensioners were penalized for working in prohibited reemployment. The following provisions governed:

(1) Section 4.13(a) of the Old Pension Plan provided: “A Pensioner shall have his benefit payments suspended for any calendar month in which he works in ‘Prohibited Reemployment’ .... A Pensioner shall permanently lose his rights to any benefit payments which are suspended because of his work in Prohibited Reemployment.” Id. at 57.

(2) Section 4.13(c) of the Old Pension Plan required a pensioner to notify the Pension Fund if he returned to work in any capacity and to inform the Pension Fund of information related to the pensioner’s work (including the pensioner’s specific job duties) so that the Pension Fund could determine whether the reemployment constituted prohibited reemployment. Furthermore, a pensioner could be requested “to certify, in writing, that he has not been working in any capacity which would result in the suspension of his benefit payments.” Id. at 58. If a pensioner failed to furnish information related to his work, Old Pension Plan Section 4.13(c) also provided for benefits to be suspended until the required information was supplied.

(3) Under Section 4.13(m) of the Old Pension Plan, “[a] Pensioner who fail[ed] to notify the Pension Fund that he has returned to work in Prohibited Reemployment shall be obligated to reimburse the Pension Fund for all retirement pension benefit payments he received for any month, or part of a month, in which he was reemployed.” Id. at 60.

(4) Old Pension Plan Section 7.05(a) made any misrepresentation in a claim for pension or other benefits grounds for recovery by the Pension Fund of any benefit payments made in reliance on the misrepresentation. Section 7.05(b) of the Old Pension Plan gave the Board the right to recover excess payments that had been made “due to a mistake.” Id. at 69.

(5) Section 4.13(e) of the Old Pension Plan permitted a pensioner to request from the Pension Fund “a determination on whether the work he is contemplating shall result in the suspension of his benefit payments.” Id. at 58.

b. Under the New Pension Plan

The following provisions govern the same area under the New Pension Plan:

(1) Section 4.13(a) of the New Pension Plan provides:
The Pension Fund shall permanently suspend all Periodic Benefit Payments of a Pensioner ... during Periods of his Reemployment to the following extent:
(2) all Periodic Benefit Payments to a Pensioner shall be permanently *689 suspended during all periods of [prohibited reemployment] ....

R.68, Ex.H at 62.

(2) Section 4.13(b) of the New Pension Plan requires Pension Fund participants, “as a prerequisite to any receipt of Periodic Benefit Payments, to keep the Pension Fund fully and promptly informed of any employment ... in which he was or is engaged during any time period for which he claims or has received Periodic Benefit Payments.” Id. at 63.

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423 F.3d 684, 35 Employee Benefits Cas. (BNA) 2397, 2005 U.S. App. LEXIS 19363, 2005 WL 2155661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-herman-daniel-paule-larry-arwood-v-central-states-southeast-and-ca7-2005.