Source: https://law.justia.com/cases/federal/appellate-courts/F3/226/394/540215/
Timestamp: 2019-04-20 08:16:34+00:00

Document:
This case involves competing claims over proceeds from a pension plan. For the reasons assigned below, we affirm the magistrate judge's ruling.
In September of 1996, Donald and Mary Perkins died simultaneously when the motorcycle on which they were riding was struck head-on by a truck. At the time of his death, Mr. Perkins was employed as a bus driver at Sportran, Inc ("Sportran"). Perkins participated in a package of three benefit plans sponsored by Sportran. The three benefit plans are a Life Insurance Plan, Employee Retirement and Disability Pension Plan ("Pension Plan"), and a 401(K) Plan.
Donald and Mary Perkins did not have any children during their marriage, however, they both had children from previous marriages. Mr. Perkins had three children, Allecca Perkins Tucker, Pamela Perkins Krug, and Amanda Perkins. Mr. Perkins was also survived by a brother, David Perkins. Mrs. Perkins had three children, Brian Martin, Billy Martin, and Lori Boyett.
Both Donald and Mary Perkins executed wills prior to their deaths. Each will contained reciprocal bequests of the testator-spouses' entire estate to the survivor. Each will also contained alternative bequests to the testators' children in the event that the spouses were to die in a common disaster. Both wills were probated in Louisiana state district court.
The issue before the court is whether the magistrate judge erred when he awarded the death benefits, $62,057.58, from the Pension Plan to Lori Boyett as executrix of Mary Perkins's estate.
The parties have stipulated that the Pension Plan in question is covered under the Employment Retirement Income Security Act of 1974 ("ERISA"). Our review of the record indicates that the Pension Plan is covered under ERISA. Generally, when an ERISA plan confers on the plan administrator the discretion to determine eligibility for benefits or to interpret the plan's terms, the federal court review of the plan administrator's decision is for abuse of discretion. See Threadgill v. Prudential Securities Group, Inc., 145 F.3d 286, 292 (5th Cir. 1998). Although the parties stipulated that all administrative remedies had been exhausted, the record does not contain any decision by the plan administrator. Consequently, the magistrate judge determined that the parties waived any benefits of a discretionary review, and reviewed the instant matter de novo. The parties do not challenge the magistrate judge's decision to review the claims de novo, and thus, we review the magistrate judge's construction of the Pension Plan de novo.
David Perkins, Donald Perkins's surviving brother, argues that he is entitled to the death benefits under the Pension Plan because he is designated as the secondary beneficiary under the plan. Donald Perkins's children argue that they are entitled to the death benefits because Mr. Perkinshad executed a "simultaneous death" clause in his will which essentially provided that if he and his spouse were to die in a common disaster, his property would be included in his estate and distributed equally among his surviving children. They also claim that under the Louisiana Civil Code articles governing commorientes, Mary Perkins is presumed to have predeceased Donald Perkins, and thus his property including the death benefits from the Pension Plan belongs to his estate. Finally, Lori Boyett, executrix of Mary Perkins's estate, maintains that the magistrate judge did not err because Mary Perkins, as the designated primary beneficiary, is entitled to the death benefits.
Because Mr. Perkins's children's claim raises a preemption issue, we address their claim first. Mr. Perkins's children essentially maintain that Mr. Perkins's will governs the distribution of the benefits under the Pension Plan. We disagree. Congress adopted ERISA to safeguard retirement benefits and to establish national uniformity in employee benefit law. See Shaw v. Delta Air Lines, 463 U.S. 85, 103, S. Ct. 2890, 2896-97, 77 L. Ed. 2d 490 (1983). To help achieve uniformity, Congress enacted a broad preemption clause in 29 U.S.C. § 1144(a), which provides, generally, that ERISA "shall supersede any and all State law insofar as they may now or hereafter relate to any employee benefit plan . . . ." As such, ERISA preempts state laws that touch upon the distribution of benefits and proceeds of plans covered under ERISA. See Thibodeaux v. Continental Casualty Ins., Co, 138 F.3d 593 (5th Cir. 1998) (Louisiana law that purported to define "total disability" was preempted by ERISA); see also McMillan v. Parrot, 913 F.2d 310 (6th Cir. 1990) (designation of beneficiary in life plan documents governed over preempted state law clams); Brown v. Connecticut General Life Ins. Co., 934 F.2d 1193 (11th Cir. 1991) (determination of the beneficiary of life policy was governed solely by ERISA). Furthermore, the Supreme Court has held that testamentary instruments purporting to distribute proceeds and benefits covered under ERISA are preempted by federal law. See Boggs v. Boggs, 520 U.S. 833, 843-844, 117 S. Ct. 1754, 1761-1762, 138 L. Ed. 2d 45 (1997). As such, Mr. Perkins's will and Louisiana law, as they relate to the distribution of the benefits of the Pension Plan, are preempted by ERISA.
If the above designated primary beneficiary  (Mary Perkins) should die before me (Donald Perkins), I hereby designate the following person as Secondary Beneficiary of my death benefits under the plan.
(parentheticals added). The Plan designates David Perkins as the secondary beneficiary. Because the parties stipulated that the Perkins died instantaneously and simultaneously in a common disaster, the magistrate judge reasoned that Mary Perkins did not die before Donald Perkins. As such, under the plain language of the Plan, the magistrate judge held that Mary Perkins's succession was entitled to the death benefits.
For the reasons above, we AFFIRM the magistrate judge's judgment.
Lori Boyett was qualified and appointed as the executrix of Mary Perkins's succession under Louisiana law, and thus, represents Mary Perkins's interests in the instant case. Rebecca Snook represents the interests of minor Amanda Perkins under Louisiana law as her appointed tutrix.
Mary Perkins was named as the primary beneficiary under the 401(K) Plan. Because the 401(K) Plan provides that "the secondary beneficiary will receive benefits only if the primary beneficiary is not alive," the magistrate judge awarded the proceeds from the 401(K) Plan to Allecca Perkins Tucker. The validity of this award is not before us on appeal.
The life insurance policy provided that if the designated beneficiary, Mary Perkins, did not survive the insured, the proceeds were to be distributed to the surviving spouse, or the children of the insured in equal shares.
Lori Boyett filed a notice of appeal to contest the magistrate judge's judgment regarding the 401(K) and the Life Insurance Plan. However, the children of Mr. Perkins maintain that Ms. Boyett notice of appeal was filed untimely, and Ms. Boyett concedes such in her brief. As such, Ms. Boyett has waived her right to appeal the magistrate judge's judgment.
Because ERISA governs the distribution of benefits and proceeds under the Pension Plan, we need not discuss how the proceeds would be distributed under Mr. Perkins's will or under the Louisiana Civil Code articles governing commorientes.
We acknowledge that it is counterintuitive that Mr. Perkins intended for Lori Boyett (Mrs. Perkins's biological daughter) to receive the death benefits under the Pension Plan in lieu of his biological children and biological brother. Notwithstanding, we are bound to give effect to the plain language that appears within the four corners of the Pension Plan as well as the stipulation of the parties regarding the Perkins' simultaneous death. Furthermore, we cannot avoid, disregard, or circumvent the plain language of the Pension Plain in order to produce a more predictable result.

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