Opinion ID: 6496026
Heading Depth: 2
Heading Rank: 1

Heading: Key Documents

Text: We describe in detail the key documents in this case: the collective bargaining agreement (CBA), the KeySpan Retirement Plan (Master Plan), and the BGC Pension Plan, a component plan of the Master Plan.1 The parties each argue that 1 In 2000, KeySpan Corporation acquired Eastern Enterprises, the parent company of Boston Gas Company. See S. Moeller, Local Gas Company Buyout Competed, Cape Cod Times (Nov. 25, 2000, 1:00 AM), https://www.capecodtimes.com/story/news/2000/ 11/25/local-gas-company-buyout-completed/51013887007/. In 2007, National Grid, in turn, acquired KeySpan Corporation. See National Grid, KeySpan Complete $11.8B Merger, Nat. Gas Intel. (Aug. 27, - 3 - the text of these documents requires judgment in their favor. The Union and the Company are parties to the CBA, which sets forth pension benefits for certain employees. These benefits are described in further detail in the Master Plan and in Addendum M to the Master Plan, which is the BGC Pension Plan. The Master Plan details certain provisions of the pension plan for all National Grid employees, regardless of the acquired company for whom the employees originally worked. The BGC Pension Plan provides for additional governing terms for Union members formerly employed by the Boston Gas Company and its successors, like Barnard and Colleran. It provides for the creation of the JPC and the delegation of certain Plan Administrator fiduciary obligations to the JPC.
The current CBA is in effect from January 20, 2019, to June 16, 2024. The CBA provides, inter alia, for pension benefits for employees hired before January 20, 2019. The CBA refers to 2007), https://www.naturalgasintel.com/national-grid-keyspan-comp lete-11-8b-merger-2/. The Master Plan retained the KeySpan title despite the acquisition. The Master Plan contains twenty different component plans that were each merged into the Master Plan because the Company (National Grid) has acquired a number of companies over time that each had their own pension plans before their acquisitions, including the Boston Gas Company. Addendum M to the Master Plan, the BGC Pension Plan, is the only component plan at issue. - 4 - the Master Plan and the BGC Pension Plan. The CBA itself also details many of the core terms in the Master Plan and the BGC Pension Plan. The CBA states that [n]othing herein will be construed to alter, amend or in any way change the provisions of the Boston Gas Company Union Employees' Pension Plan. Complete benefit details are contained in the Plan Document. Thus, we turn to the plan documents. 2. Plan Documents and Delegations to the JPC Under ERISA
The Master Plan designates the Retirement Plans Committee as the plan administrator of the Master Plan under Section 3(16)(A) of ERISA. See 29 U.S.C. § 1002(16)(A). Under the Master Plan, the Plan Administrator shall have all powers, authority and discretion necessary or helpful for carrying out its responsibilities under the Plan. The Master Plan provides that the Plan Administrator shall have full power and complete discretion:
administration of the Plan which are not inconsistent with the terms and provisions of the Plan and applicable law;
provisions, conditions and limitations of the Plan and to determine all questions arising out of or in connection with the provisions of the Plan or its administration, including, but not limited to, interpretive or factual questions regarding eligibility, vesting and the amount, manner and timing of payment of - 5 - benefits, and the Committee's determination on all such issues shall be final and binding on all persons and subject to the fullest deference permitted by law; . . . (e) To prescribe procedures to be followed by Participants, Spouses, . . . and Beneficiaries for the filing of applications for benefits; [and] (f) To prepare and distribute, or cause to be prepared and distributed, such Participant disclosures, notices and other communications as may be required by law or otherwise determined necessary or desirable by the Committee; . . . . Other text in the Master Plan and in the BGC Pension Plan provides that the Plan Administrator may delegate these powers to others. Section 7.2 of the Master Plan, for example, provides that [i]n accordance with Section 405(c) of ERISA, the [Retirement Plans] Committee shall have the right . . . to designate persons other than the Committee to carry out fiduciary responsibilities (other than trustee responsibilities) under the Plan. See 29 U.S.C. § 1105(c) (providing that a plan administrator may delegate fiduciary responsibilities if permitted by the ERISA plan). The Master Plan separately establishes a claims procedure pursuant to Section 503 of ERISA. See 29 U.S.C. § 1133. The review process applies to the denial of a claim for benefits under the plan and permits a claimant to request, through written notice, that the Plan Administrator conduct a full and fair review - 6 - of the denial of the claim. If the claim is denied on review, the claimant may then bring a civil action under Section 502(a) of ERISA. See 29 U.S.C. § 1132(a).
In furtherance of the Master Plan's provision providing for the delegation of fiduciary duties, the BGC Pension Plan provides pension benefits to individuals employed by the Boston Gas Company and its successors through provisions delegating the Plan Administrator's authority. The BGC Pension Plan was established in 1971. In 2003, after KeySpan Corporation acquired Boston Gas Company, the BGC Pension Plan was consolidated with other retirement plans maintained by KeySpan Corporation and became a component plan of the Master Plan. Since at least 1971, the provisions of the BGC Pension Plan have been amended by the Union and the Company in collective bargaining agreements. The Company's right to amend the BGC Pension Plan is subject to the terms of the CBA. Article 12 of the BGC Pension Plan outlines the Administration of the Plan and states that [e]xcept as otherwise stated in this Article 12, the administration rules of the [BGC Pension] Plan are set forth in the Master Plan. The terms of the BGC Pension Plan thus supersede those of the Master Plan where they are otherwise stated in the BGC Pension Plan. - 7 - Article 12 of the BGC Pension Plan provides for the creation of a JPC as a plan fiduciary composed of three members appointed by the Union and three members appointed by the Plan Administrator. Article 2 of the BGC Pension Plan defines the JPC as: the Committee appointed to resolve questions relating to eligibility as set forth in Article 12, and such Committee shall discharge its duties as a fiduciary in accordance with the standards established under ERISA with respect to any person who exercises any discretionary authority or responsibility in the administration of the Plan. We highlight several pertinent provisions. Under Article 12, the JPC shall have such powers as are necessary for the proper execution of its duties under the Plan, including . . . [t]o make determinations as to the rights of any Employees applying for or receiving Retirement Allowances. Article 12 sets forth a mandatory arbitration clause for disputes as follows: 12.025. Arbitration. In the event that the members of a Joint Pension Committee cannot settle any dispute, with the exception of determining whether an Employee is disabled, the whole matter will be referred to arbitration. The fees for such arbitration will be paid jointly by the parties involved. No matter regarding the Plan or any difference arising thereunder shall be subject to the grievance procedure of a Collective Bargaining Agreement. (second and third emphases added). Article 12 also provides: - 8 - 12.027. Referral Back to Parties. Any case referred to a Joint Pension Committee on which it has no power to rule shall be referred back to the parties without ruling.2