Shea v. Iron Workers District Council of New England Pension Fund

158 F. Supp. 3d 20, 61 Employee Benefits Cas. (BNA) 2753, 2016 U.S. Dist. LEXIS 11442, 2016 WL 393183
CourtDistrict Court, D. Massachusetts
DecidedFebruary 1, 2016
DocketCivil Action No. 13-12725-NMG
StatusPublished
Cited by1 cases

This text of 158 F. Supp. 3d 20 (Shea v. Iron Workers District Council of New England Pension Fund) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shea v. Iron Workers District Council of New England Pension Fund, 158 F. Supp. 3d 20, 61 Employee Benefits Cas. (BNA) 2753, 2016 U.S. Dist. LEXIS 11442, 2016 WL 393183 (D. Mass. 2016).

Opinion

MEMORANDUM & ORDER

GORTON, DISTRICT JUDGE.

This case involves allegations that two employers unlawfully refused to award pension credits and annuity contributions to an employee for his periods of military service, all in violation of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”), 38 U.S.C. §§ 4301, et seq.

Pending before the Court are plaintiffs and defendants’ cross-motions for summary judgment. For the reasons that follow, plaintiffs motion will be allowed, in part, and denied, in part, and defendants’ motion will be dénied.

I. Background and procedural history

A. The parties

Plaintiff Thomas M. Shea (“Shea” or “plaintiff’) is an ironworker and union member who has participated in defendants’ pension and annuity fund programs since 1982. Plaintiff enlisted in the United States Navy Reserve in 1999 and now serves as a Senior Chief Petty Officer. He resides in Massachusetts.

Defendant Iron Workers District Council of New England Pension Fund (“the Pension Fund”) is managed in accordance with a multi-employer, . defined-benefit pension plan known as “the Pension Plan.” The Pension Plan is an employee pension benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1002(2)(A). The Pension Fund is an employer within the meaning of § 4303(4)(c) of USERRA, with respect to its obligation to provide benefits to eligible employees pursuant to § 4318.

Defendant Trustees of the Iron Workers District Council of New England Pension [24]*24Fund (“the Pension Fund Trustees”) administers the Pension Fund and is the “plan sponsor” under ERISA, 29 U.S.C. § 1002(16)(B).

Defendant Iron Workers District Council of New England Annuity Fund (“the Annuity Fund”) is managed in accordance with a multi-employer, defined-eontribution pension plan known as “the Annuity Plan.” The Annuity Plan is an employee pension plan within the meaning of § 1002(2)(A) of ERISA and is an employer within the meaning of § 4303(4)(c) of US-ERRA, with respect to its obligation to provide benefits to eligible employees pursuant to § 4318.

Defendant Trustees, of the Iron Workers District Council of New England Annuity Fund (“the Annuity Fund Trustees”) administers the Annuity Fund and is the plan sponsor under § 1002(16)(B) of ERISA.

B. The Pension Plan

The Pension Plan provides monthly benefits to retired employees who have accumulated a total of 30 pension credits and at least 15 pension credits as of December 31, 2006. Employees receive 1) one full pension credit if they work at least 1,200 hours in a calendar year, 2) a fraction of a pensioh credit if they work between 300 and 1,200 hours in a calendar year and 3) no pension credit if they work'fewer than 300 hours in a calendar year. Employees who work more than 1,200 hours in a calendar year can “bank” the extra hours and apply them to another calendar year.

The Pension Plan allows servicemem-bers returning from a period of military service to accrue retroactively pension credits for that period as long as they 1) are not dishonorably discharged, 2) return to employment with a covered employer within 90 days of completing the period of service,- 3) work at least 300 hours for a covered employer within one year from the date of discharge and 4) accrue 2.5 pension credits within five years after the date of discharge.

The Pension Plan also incorporates the five-year limit set forth in USERRA which provides servicemembers with reemployment rights and benefits so long as, inter alia,

the cumulative length of the absence and of all previous absences from a position of employment with that employer by reason of service in the uniformed services does not exceed five years ....

§ 4312(a)(2). The five-year limit does not apply to periods of military service during which the servicemember was ordered to or retained on active duty 1) in accordance with 10 U.S.C. § 12302 which pertains to servicemembers in “Ready Reserve”, see § 4312(c)(4)(A), or 2) under any provision of law due to a war or national emergency declared by the President or Congress, as determined by the appropriate Secretary, unless the active duty consists of training, see § 4312(c)(4)(B).

C. The Annuity Plan

The Annuity Plan requires the Annuity Fund Trustees to “establish individual Employee Accounts to track each Annuity Plan member’s interest in the Annuity Fund.” A servicemember who is timely reemployed after a period of military service is entitled to an annuity contribution from the employer to his or her individual employee account for that period of military service. The Annuity Plan places the responsibility for making those contributions on the last employer for whom the servicemember worked before entering military service.

The Annuity Plan also incorporates the five-year limit on cumulative military service set forth in § 4312(a)(2) and the active [25]*25duty exemptions set forth in § 4312(c)(4)(A) and (B).

D. Plaintiff’s military and employment history

Over the course of his employment from 1982 to 2007, plaintiff participated in the Pension and Annuity Funds, earned 22 pension’ credits and banked 6.13 supplementary credits. His last employer prior to his first military deployment in 2007 was Capeo Steel Corporation (“Capeo Steel”), a-company which “has since gone out of business.”

1.First deployment

Plaintiff’s first deployment, to Iraq, began on June 4, 2007 and ended ten and a half months later -on April 18, 2008. His order of deployment expressly stated:

The member is ordered to active duty ... in' support of the national emergency declared under Presidential Proclamation 7463 of 14 SEP 01. Under the provisions of [38 U.S.C. § 4312(c)(4)(A) and (B)], this period of active duty is exempt from the 6-year cumulative service limitation on reemployment rights under [USERRA].

On March 11, 2002, the Secretary of the Navy issued a memorandum to the Chief of Naval Operations declaring that:

In . accordance ’ with 38 U.S.C. 4312(c)(4)(b) ..., I have determined that Navy and Marine Corps Reserve personnel voluntarily ordered to or retained [on] active duty (other than for training) in support of the national emergency declared under ■ Presidential Proclamation 7463 of [14] September 2001, will have those periods of service exempted [f]rom the five-year limitation for reemployment rights under [USERRA].

After his honorable discharge from deployment, plaintiff attended military training for 58 days between mid-April, 2008 and late August, 2008. He subsequently worked 112 hours for Capeo Steel between August 25, 2008 and September 14, 2008.

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158 F. Supp. 3d 20, 61 Employee Benefits Cas. (BNA) 2753, 2016 U.S. Dist. LEXIS 11442, 2016 WL 393183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shea-v-iron-workers-district-council-of-new-england-pension-fund-mad-2016.