943 F. Supp. 2d 83
D.D.C.2013Background
- Sandusky established the Sandusky, Limited Pension Plan for Hourly Employees, with the Plan incorporated by the CBA.
- Plaintiffs allege the 1999-2002 CBA required elimination of all pension reduction factors for early retirement.
- Sandusky amended the Plan in 2000 and restated it in 2003; the 2003 restatement did not include elimination of reduction factors.
- The 2002-2007 CBA replaced the 1999-2002 CBA and did not contain a provision eliminating reduction factors.
- Sandusky filed for Chapter 11 in 2006; the Plan terminated and PBGC became trustee on December 22, 2006.
- PBGC calculated Burmeister’s pension with an early-retirement reduction; Appeals Board denied relief in 2011; Burmeister and UAW sued in 2012 seeking Plan reform.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PBGC's decision complied with the APA. | Burmeister argues the 1999-2002 CBA elimination should govern. | PBGC asserts the 2002-2007 CBA controlled and eliminated language was not in effect. | Yes; court upholds PBGC under APA. |
Key Cases Cited
- Marsh v. Or. Natural Res. Council, 490 U.S. 360 (1989) (arbitrary and capricious review requires rational connection)
- Motor Vehicle Mfrs. Ass’n of U.S., Inc. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983) (narrow scope of review; presumption of regularity)
- Bowen v. Am. Hosp. Ass’n, 476 U.S. 610 (1986) (agency must articulate a rational connection between facts and choice)
- Sierra Club v. Mainella, 459 F. Supp. 2d 76 (D.D.C. 2006) (APA review of agency record in final action; administrative record sufficiency)
- Allied Chem. & Alkali Workers of Am., Local Union No. 1 v. Pittsburgh Plate Glass Co., Chem. Div., 404 U.S. 157 (1971) (pension/retirement benefits as mandatory bargaining subjects)