The First Circuit recently issued a decision in Bonneau v. Plumbers & Pipefitters Local 51 Pension Trust Fund, No. 13-1515 (1st Cir. Nov. 15, 2013). This interesting case addresses an open question โ when a pension plan is amended to enhance benefits based on prior service, are those benefit enhancements protected accrued benefits that cannot be reduced by a future amendment, or are they gratuitous benefits that can be taken back? The First Circuit decided that if the benefit enhancement is adopted while the employees are still employed, the resulting benefits are protected, but if they are adopted after retirement or termination of employment, they are not protected by ERISA.
Home > Federal Law Articles > Employee Benefits > Retiree Benefits > First Circuit Issues Decision Concerning Pension Plan Amendments Taking Away Retroactive Benefit Enhancements; Distinguishes Between Retroactive Amendments Benefiting Current vs Former Employees