Hughes Aircraft Company, et al. v. Stanley I. Jacobson et al. (525 U.S. 432)
U.S. Supreme Court · decided January 25, 1999 · Supreme Court Database (Spaeth)
- Citation
- 525 U.S. 432 · 119 S. Ct. 755
- Decided
- January 25, 1999
- Term
- October Term 1998
- Vote
- 9–0
- Majority author
- Justice Thomas
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Thomas delivered the opinion of the Court. Five retired beneficiaries of a defined benefit plan, subject to the terms of the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 832, as amended, 29 U. S. C. § 1001 et seq., filed a class action lawsuit against their former employer, Hughes Aircraft Company (Hughes), and the Hughes Non-Bargaining Retirement Plan (Plan). They claim that Hughes violated ERISA by amending the Plan to provide for an early retirement program and a noneontribu-tory benefit structure. The Ninth Circuit held that ERISA may prohibit these amendments. We reverse. I According to the complaint, Hughes has provided the Plan for its employees since 1955. Prior to 1991, the Plan required mandatory contributions from all participating employees, in addition to any contributions made by Hughes. Section 3.1 of the Plan defines Hughes’ funding obligations: “The cost of Benefits under the Plan, to the extent not provided by contributions of Participants . . . shall be provided by contributions of [Hughes] not less than in such amounts, and at such times, as the Plan Enrolled Actuary shall certify to be necessary, to fund Benefits under the Plan ....” In addition, §3.2 provides that Hughes’ contributions shall not fall below the “amount necessary to maintain the quali-fled status of the Plan ... and to comply with all applicable legal…
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