Opinion ID: 1203285
Heading Depth: 1
Heading Rank: 2

Heading: Salaried Employees: Plan Documents

Text: At the time each of the salaried retirees named in this suit retired, one of two medical plans governed: the 1999 Philips Retiree Medical Plan (the 1999 Plan) or the 2003 Philips Retiree Medical Program (the 2003 Program). The 1999 Plan took effect on January 1, 1999; the 2003 Program controlled from January 1, 2003. The SPDs for both plans stated that PENAC was the plan sponsor and administrator and that Philips PACE provided Administrative Services. [3] (J.A. at 509-10, 526.) According to the SPDs, to be eligible for healthcare coverage in retirement, salaried employees had to: 1) retire after their 55th birthday and have at least 15 years of eligible service; 2) begin receiving Philips pension benefits immediately after termination of service (or receive a lump sum); 3) be eligible for a company-sponsored medical plan immediately prior to retirement; 4) be in a group covered by the Philips Retiree Medical Program at the time they left the company. (J.A. at 501, 516.) The plans also required salaried retirees to pay contributions in order to maintain their coverage. ( See, e.g., id. at 515, 516, 518.) The SPDs explained various situations in which coverage would end, such as when a beneficiary become[s] ineligible or the group plan terminates. (J.A. at 523.) Further, the 1999 Plan contained the following reservation of rights clause: Although the company presently intends to continue the plan indefinitely, Philips Electronics North America reserves the right to alter any of its provisions, to change the amount of contributions or to terminate all or any part of it, as the company in its sole discretion deems necessary, without prior notice to any covered person. Any amendment to the plan, change in the amount of employee or dependent contributions or termination of part or all of the plan shall be effected by a written document executed on behalf of the company. Termination of coverage under the plan will not prejudice any claim originating before the date of such termination. (J.A. at 508.) [4]