Opinion ID: 217949
Heading Depth: 2
Heading Rank: 2

Heading: The 5 + 5 Retirement Option.

Text: In December 1989, Qwest offered an early retirement program, the 5 + 5 Option. 5 Aplt.App. 968. Qwest sent a packet of materials summarizing the benefits available under the 5+5 Option to eligible retirees, including Plaintiffs Kerber and Phelps. Id.; see 9 Aplt.App. 1775-1808. Those materials stated that employees who accepted the 5 + 5 Option would be entitled to life insurance benefits under the Plan and briefly described those benefits. 9 Aplt.App. 1784, 1798. However, the materials clearly stated, While the plans listed below are the plans currently provided to eligible employees upon retirement, the Company reserves the right to amend or terminate any or all provisions in the future for any reason. Id. at 1797. In response to questions about the 5 + 5 Option, Qwest conducted a video conference that contained the following colloquy: Moderator: . . . There is a statement in some of the paperwork that people received in their packets that's raised some questions, and that is the statement that says the company reserves the right to change benefits. There are some people worried about that. Can you speak to that statement? Human Resource Director Charlie Kamen: Sure. That's a typical reservation of rights statement that appears in virtually every employee benefit plan, not just [Qwest] benefit plans, but all companies' benefit plans. It is not intended to be divisive, it is not intended to be a below the board type of thing. What it is intended to do though, is it's intended to give the company the ability to modify the plans as circumstances and conditions change in the future. It's really intended to make the plans more meaningful not only for the employees but for the company. See Kerber, 656 F.Supp.2d at 1279. Plaintiffs Kerber and Phelps voluntarily retired under the 5 + 5 Option, as did Sharon Strizich. Id. at 1282 & n. 3. On March 26, 1990, Qwest sent confirmation letters to employees who retired under the 5 + 5 Option. 5 Aplt.App. 968. The letters indicated that retirees were entitled to receive life insurance benefits under the Plan. See 3 Aplt.App. 500-01. However, the letters did not purport to describe the details of those benefits. See id.