Opinion ID: 172426
Heading Depth: 1
Heading Rank: 10

Heading: Early Retirement Benefit?

Text: Plaintiffs argue, in the alternative, that the DLS Equivalent constitutes an early retirement benefit under the anti-cutback provision. [6] ERISA does not contain a definition of the phrase early retirement benefit. Instead, Congress contemplated that the Treasury Department would promulgate regulations setting forth a definition of this phrase. Bellas v. CBS, Inc., 221 F.3d 517, 524 (3d Cir.2000) (citing 29 U.S.C. § 1054(g)(2)(A)). On August 12, 2005, the Secretary of the Treasury promulgated a regulation defining the phrase early retirement benefit to mean the right, under the terms of a plan, to commence distribution of a retirement-type benefit at a particular date after severance from employment with the employer and before normal retirement age. 26 C.F.R. § 1.411(d)3(g)(6)(i) (2008). As previously noted, that same regulation, in turn, defined the phrase retirement-type benefit to mean (A) [t]he payment of a distribution alternative with respect to an accrued benefit; or (B) [t]he payment of any other benefit under a defined benefit plan ... that is permitted to be in a qualified pension plan, continues after retirement, and is not an ancillary benefit. 26 C.F.R. § 1.411(d)-3(g)(6)(iii). Lastly, the phrase defined benefit plan is defined under ERISA to mean a pension plan other than an individual account plan.... 29 U.S.C. § 1002(35). Although the DLS Equivalent, by its express terms, was payable to certain management employees at the time of their retirement, it otherwise does not fall within the Treasury's definition of the term early retirement benefit. In particular, for the reasons discussed above in the analysis of plaintiffs' argument that the DLS Equivalent qualifies as a retirement-type subsidy, it is clear that the DLS Equivalent does not qualify as a retirement-type benefit, and thus, in turn, cannot qualify as an early retirement benefit. [7]