Central Laborers' Pension Fund v. Thomas E. Heinz et al. (541 U.S. 739)

U.S. Supreme Court · decided June 7, 2004 · Supreme Court Database (Spaeth)

Citation
541 U.S. 739 · 124 S. Ct. 2230
Decided
June 7, 2004
Term
October Term 2003
Vote
9–0
Majority author
Justice Souter
Issue area
Economic Activity
Disposition
Affirmed
Outcome
Petitioning party lost
Ideological direction
Liberal

Opinion excerpt

Justice Souter delivered the opinion of the Court. With few exceptions, the “anti-cutback” rule of the Employee Retirement Income Security Act of 1974 (ERISA) prohibits any amendment of a pension plan that would reduce a participant’s “accrued benefit.” 88 Stat. 858, 29 U. S. C. § 1054(g). The question is whether the rule prohibits an amendment expanding the categories of postretirement employment that trigger suspension of payment of early retirement benefits already accrued. We hold such an amendment prohibited. I Respondents Thomas Heinz and Richard Schmitt (collectively, Heinz) are retired participants in a multiemployer pension plan (hereinafter Plan) administered by petitioner Central Laborers’ Pension Fund. Like most other participants in the Plan, Heinz worked in the construction industry in central Illinois before retiring, and by 1996, he had accrued enough pension credits to qualify for early retirement payments under a defined benefit “service only” pension. This scheme pays him the same monthly retirement benefit he would have received if he had retired at the usual age, and is thus a form of subsidized benefit, since monthly payments are not discounted even though they start earlier and are likely to continue longer than the average period. Heinz’s entitlement is subject to a condition on which this case focuses: the Plan prohibits beneficiaries of service only…

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