10-3287 Carter v. Pension Plan of A. Finkel & Sons Co.

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Employment
ERISA

Where an employer terminated its attempts to withdraw from a pension plan, employees have no right to collect benefits while still working.

“[T]the Plan did not terminate. Indeed, Finkl was still making contributions to the Plan. Even more, the Agency and the IRS still consider the Plan an ongoing plan in full compliance with the Act. And if the Plan had gone through with some unauthorized, non-standard termination, those entities would not consider it in conformity with the Act. Had the Plan done that or if it had proceeded to give the plaintiffs the benefits they sought without having first terminated, the Plan would not conform with the Act. Again, plaintiffs aren’t seeking an early retirement benefit—they don’t want to retire, they want to keep on working. This would not comply with the Act and would lead to immediate and severe tax consequences for the Plan and for the beneficiaries. Besides the immediate penalties that would be levied against the Plan, its beneficiaries would be taxed on all the Plan’s contributions, even though they wouldn’t have access to these benefits. Against this backdrop, nothing suggests that the Plan terminated, while everything points to the fact that the Plan has never terminated and remains ongoing. Thus, the Plan’s decision that it never terminated and therefore the plaintiffs never accrued the right to receive an annuity while remaining employed with Finkl is reasonable and fully supported by the record.”

Affirmed.

10-3287 Carter v. Pension Plan of A. Finkel& Sons Co.

Appeal from the United States District Court for the Northern District of Illinois, Pallmeyer, J., Manion, J.

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