Opinion ID: 17522
Heading Depth: 3
Heading Rank: 2

Heading: Distribution of Benefits

Text: Matassarin argues that she is currently entitled to distribution of her benefit, that beneficiaries under the ESOP may select distribution of benefits “in the form of employer securities,” and that beneficiaries have an option to “put” those securities back for fair market value. Matassarin argues that two tax code provisions--26 U.S.C. § 409(h)15 and 26 U.S.C. 14. In the original Plan § 19(a), Great Empire “reserve[d] the right to amend the Plan at any time and from time to time, in whole or in part, including without limitation, retroactive amendments . . . .” Matassarin became a Plan beneficiary on October 15, 1991, and remained so in 1994, when the Plan was restated. Section 1(b) of the 1994 restatement rendered the restatement’s provisions retroactive to January 1, 1989. The restatement does not except segregated accounts from retroactive application of its terms. Thus, at the time that Plan fiduciaries offered Matassarin a distribution in December 1994 or May 1995, they might have been able to treat Matassarin’s account--a “segregated account” as established under the Plan--as subject to the restated Plan. 15. That statute provides, in part: A plan meets the requirements of this subsection -26- § 4975(e)(7)16--mandate these beneficiary options in a tax-exempt plan such as the Great Empire ESOP. Matassarin is correct that, under those provisions, ESOP participants who are entitled to distribution must be able to demand employer securities as the form of distribution. She is, however, mistaken to contend that she is now entitled to a distribution. Although the QDRO fails to specify the date of distribution, § 18(e)(4) in both the original and the restated Plan provides that no distributions need be made to Matassarin before Jenkins reaches retirement eligibility. The Retirement Equity Act recognizes that a QDRO may delay distribution until the Plan participant could retire. See 29 U.S.C. § 1056(d)(3)(E)(i). We see no reason why an ERISAqualified plan may not do the same. Matassarin’s domestic relations order met the Plan’s § 18(e) qualifications. The Plan administrator interpreted the QDRO requirements and harmonized them with the Plan provisions. We find no error in the Plan administrator’s interpretation of the if a participant who is entitled to a distribution from the plan—(A) has a right to demand that his benefits be distributed in the form of employer securities, and (B) if the employer securities are not readily tradable on an established market, has a right to require that the employer repurchase employer securities under a fair valuation formula. 26 U.S.C. § 409(h)(1). 16. “A plan shall not be treated as an employee stock ownership plan unless it meets the requirements of section 409(h) . . . .” 26 U.S.C. § 4975(e)(7). -27- QDRO and no abuse of discretion in its interpretation of the Plan provisions. Accordingly, we affirm the district court’s grant of summary judgment to the defendants on Matassarin’s ERISA claim for denial of benefits.