Opinion ID: 2997119
Heading Depth: 2
Heading Rank: 2

Heading: Documents and Oral Representations

Text: The retirement package in this case involves a complicated construction of enhancements to the general retirement plan in effect at the time. Not surprisingly, the parties disagree about which documents (and oral representations) created the VSRP and its enhanced HCA benefit at issue here. Continental’s general retirement plan documents—which (together with their reservations of rights clauses) CNA argues are part of the VSRP— include No. 03-2090 5 the 1990 Comprehensive Health Care and Dental Plan of the Continental Corporation (1990 Plan) (R. 109-1, ex. 1), Your Benefits in 1991 (1991 General Summary Plan Description (SPD)) (R. 109-1, ex. 4), A Guide for Benefits for Employees Considering Retirement During 1991 (1991 Retirement Guide) (R. 109-1, ex. 6), A Guide for Employees Considering Retirement During 1992 (1992 Retirement Guide) (R. 109-1, ex. 7), and Retiree Benefits in 1991 (1991 Retiree SPD) (R. 109-1, ex. 8). Additionally, between the time the plaintiffs (and other early retirees) complained about the termination of their HCA benefit and the time the Plan Administrator rendered his decision on the formal appeals of other early retirees, CNA amended the 1990 Plan and created the 1996 Continental Insurance Company Retiree Group Medical and Dental Plan (1996 Plan) (R. 109- 1, ex. 3), which became effective in October 1998. Continental also supplied the early retirees with several documents at the time it solicited their participation in the VSRP. These documents (the VSRP Documents) include a covering memorandum dated November 21, 1991 (VSRP Covering Memo) (R. 109-2, ex. 9), A Brief Description of the Voluntary Special Retirement Program (Brief Description Newsletter) (R. 109-2, ex. 12), the 1992 Retirement Guide, a personalized calculation worksheet (R. 109-2, ex. 10), a payment election form (R. 109-2, ex. 11), an acceptance/rejection form (R. 109-2, ex. 13) and a retiree benefit elections form (R. 109-2, ex. 14). Continental is also alleged to have made oral representations to the potential early retirees regarding the nature of the HCA benefit. During group and individual meetings that took place in late 1991 between Continental’s human resources representatives and eligible employees in various locations around the country, the HCA was consistently 6 No. 03-2090 described as a “lifetime” benefit.2 Heidemann, who was an assistant vice president of human resources for the Great Lakes region and an officer of the company at the time of her retirement, testified at deposition that she had been told by her superiors in human resources that the HCA benefit was a “lifetime” benefit. (R. 118-2, tab 1, Heidemann dep. at 145, 164.) She could not recall anyone ever telling her that the VSRP benefits were irrevocable. Id. at 147. She strongly believed the VSRP was separate and distinct from the general retirement plan, and since no one in human resources ever told her the benefits could be revoked, id., and none of the documents specifically discussing the VSRP contained a disclaimer, id. at 163, 218-19, she assumed that the “lifetime” benefits were irrevocable. When Heidemann presented the VSRP to the eligible employees in her region (including Vallone), she represented the benefits as being for “your lifetime” but did not say anything about their irrevocability. (R. 118-2, tab 2, Vallone dep. at 77-79, 82.) The district court, from the perspective of the evidence most favorable to the plaintiffs, determined that eligible employees were told that the benefits were for their own and their spouses’ lifetimes; that they were not told the benefits could be changed or revoked (although they were referred to documents that reserved those rights); that they 2 CNA disputes that any formal meetings were scheduled and claims that Heidemann conducted group meetings in her region on her own initiative. (Appellees’ Br. at 14-15.) CNA moreover argues that the plaintiffs submitted 23 legally defective affidavits of other early retirees claiming they also attended meetings in other parts of the country during which the HCA benefit was described as “lifetime.” Id. at 17. We need not decide whether these affidavits were defective or not, nor whether additional meetings occurred or not, because, as we point out later, CNA admits that the HCA benefit was a “lifetime” benefit for all retirees, and the plaintiffs have not claimed that they were ever told explicitly that the HCA benefit could not be terminated or altered. No. 03-2090 7 were not told the “lifetime” benefits were irrevocable, but they nevertheless concluded that the benefits were irrevocable for reasons similar to Heidemann’s reasons; that this conclusion was material to their decision to retire; that Continental had no intention at the time of the plaintiffs’ retirement of altering the HCA benefit; and that the intention and decision to change benefits came several years later, after Continental had been acquired by CNA. (3/28/03 Order at 6.) We find that these factual determinations are reasonable and are supported by the record, but we would add that although Continental may not have had any intention of terminating the early retirees’ benefits, it did know that under ERISA its plan documents allowed it to do so.