Wilhelm H. Von Aulock and J.M. Hidalgo v. J. Clay Smith, Jr., Acting Chairman, Equal Employment Opportunity Commission

720 F.2d 176, 232 U.S. App. D.C. 1, 4 Employee Benefits Cas. (BNA) 2274, 1983 U.S. App. LEXIS 15903, 33 Fair Empl. Prac. Cas. (BNA) 3, 32 Empl. Prac. Dec. (CCH) 33,870
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 21, 1983
Docket82-2279
StatusPublished
Cited by37 cases

This text of 720 F.2d 176 (Wilhelm H. Von Aulock and J.M. Hidalgo v. J. Clay Smith, Jr., Acting Chairman, Equal Employment Opportunity Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilhelm H. Von Aulock and J.M. Hidalgo v. J. Clay Smith, Jr., Acting Chairman, Equal Employment Opportunity Commission, 720 F.2d 176, 232 U.S. App. D.C. 1, 4 Employee Benefits Cas. (BNA) 2274, 1983 U.S. App. LEXIS 15903, 33 Fair Empl. Prac. Cas. (BNA) 3, 32 Empl. Prac. Dec. (CCH) 33,870 (D.C. Cir. 1983).

Opinion

Opinion for the Court filed by Circuit Judge BORK.

BORK, Circuit Judge:

Appellants challenge an Interpretative Bulletin of the Equal Employment Opportunity Commission (“EEOC”) that they allege authorizes their employers to maintain pension plans that violate the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. §§ 621-634 (1976 & Supp. V 1981). The issue on this appeal is whether appellants’ complaint presents a case or contro versy — i.e., whether appellants have standing — even though invalidation of the Interpretative Bulletin would not compel appellants’ employers to grant prospective or retrospective relief from the allegedly unlawful pension plans. The district court granted appellee’s motion to dismiss for lack of jurisdiction. Von Aulock v. Smith, 548 F.Supp. 196 (D.D.C.1982). We affirm because we conclude that appellants’ injury, which was suffered at the hands of their *177 employers, is not fairly traceable to the EEOC’s maintenance of the Interpretative Bulletin as an interpretive regulation.

I.

According to the complaint, whose factual allegations we must accept as true in reviewing the jurisdictional dismissal, see Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 2206, 45 L.Ed.2d 343 (1975), appellant Von Aulock is an employee of Bell Laboratories in New Jersey. He is a participant in a Bell pension plan established on January 1, 1979, the day Bell raised its mandatory retirement age from 65 to 70 in order to comply with the 1978 amendment of the ADEA. Under Bell’s plan, Von Aulock’s pension will be calculated on the basis of his employment status at the time he reaches the normal retirement age of 65. Thus, although Von Aulock has continued to work past that age, his pension benefits have not been increased to take account of this work. In addition, Von Aulock’s pension benefits will not be increased to reflect his shorter expected lifespan when he retires and begins collecting benefits at an age past 65. Finally, Von Aulock is not eligible for a new Bell plan that has higher benefits and is generally available to persons who are active employees on August 10, 1980, but is not available to employees such as Von Au-loek who are past the age of 65 on that date; that is, the benefit improvement does not apply to employees past the age of 65.

Appellant Hidalgo is a former employee of Rockwell International in California and a participant in a Rockwell pension plan. Hidalgo retired from Rockwell at the age of 66, taking advantage of Rockwell’s raising of its mandatory retirement age from 65 to 70. Nonetheless, Hidalgo’s benefits under Rockwell’s pension plan were based on his employment status at the time he reached 65; the benefits took no account of his salary and cost-of-living increases in his final year of employment.

Appellants alleged in their complaint that their employers’ pension plans discriminated against them solely because they were over age 65. They further alleged that their employers’ refusal to adjust pension benefits to take account of service past age 65 has no age-related cost justification. The Bell and Rockwell pension plans, they therefore alleged, violated the ADEA’s prohibition on “discrimination] against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s age.” 29 U.S.C. § 623(a)(1) (1976).

Rather than suing their employers under the ADEA, appellants brought this action against the EEOC. They alleged in their complaint that Bell and Rockwell maintain the challenged pension plans “because they are authorized to do so by” an Interpretative Bulletin of the EEOC. Complaint ¶¶ 28, 36. They contended that the Interpretative Bulletin is contrary to the ADEA and sought a judgment, pursuant to 28 U.S.C. § 2201 (1976), both declaring the invalidity of the current Bulletin and requiring the EEOC to promulgate new regulations consistent with the ADEA.

The challenged Bulletin is an interpretation of section 4(f)(2) of the ADEA. That section declares:

It shall not be unlawful for an employer

(2) to observe the terms of a bona fide seniority system or any bona fide employment benefit plan such as a retirement, pension, or insurance plan, which is not a subterfuge to evade the purposes of [the ADEA] ....

29 U.S.C. § 623(f)(2) (Supp. V 1981). When Congress raised the upper age limit on coverage of the ADEA from 65 to 70, it became necessary to clarify the legal status of pension plans based, as many are, on a retirement age of 65. On May 25,1979, the Department of Labor, which at that time had responsibility for administering the ADEA, issued the Interpretative Bulletin that is the subject of this lawsuit. 44 Fed. Reg. 30,648 (1979) (codified at 29 C.F.R. § 860.120(f)(iv)(B) (1981)).

The Interpretative Bulletin discusses two types of retirement plans: “defined contribution” plans and “defined benefit” plans. *178 Under the former type of plan, employers make designated contributions to the accounts of participating employees, who, at retirement, receive the amount that has accumulated, through employer contributions and interest, in their accounts. Under the latter type of plan, employees receive designated periodic payments upon retirement, and employers fund the plans with whatever is necessary, which depends on changing actuarial projections, to make the designated payments. 1 Appellants challenge five provisions of the Interpretative Bulletin, one relating to defined contribution plans, and four relating to defined benefit plans.

Subsection (1) states, in relevant part, that “[a] defined contribution plan may provide for the cessation of employer contributions after the normal retirement age of any participant in the plan,” unless the plan is “supplemental” to a defined benefit plan or to another defined contribution plan. 29 C.F.R. § 860.120(f)(iv)(B)(1). 2 Subsections (3), (4), (5), and (7) provide that a defined benefit plan need not give credit, in calculating benefit accrual, for an employee’s service past normal retirement age and need not actuarially adjust the benefits accrued to reflect abnormally late retirement. Those subsections also state that a defined benefit plan need not provide for the accrual of benefits during service past normal retirement age.

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Bluebook (online)
720 F.2d 176, 232 U.S. App. D.C. 1, 4 Employee Benefits Cas. (BNA) 2274, 1983 U.S. App. LEXIS 15903, 33 Fair Empl. Prac. Cas. (BNA) 3, 32 Empl. Prac. Dec. (CCH) 33,870, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilhelm-h-von-aulock-and-jm-hidalgo-v-j-clay-smith-jr-acting-cadc-1983.