Opinion ID: 8407616
Heading Depth: 2
Heading Rank: 4

Heading: Alleged Violation of ERISA’s Minimal Accrual Standards

Text: ERISA requires pension plans to satisfy one of three benefit-accrual formu-lae. ERISA § 204(b)(l)(A)-(C), 29 U.S.C. § 1054(b)(l)(A)-(C). Moreover, with respect to pre-ERISA service, a plan beneficiary must receive accrued benefits that are no less than the greater of (i) his accrued benefits under the terms of the plan or (ii) one-half the accrued benefits he would have received under one of the three acceptable formulae. ERISA § 204(b)(1)(D), 29 U.S.C. § 1054(b)(1)(D); see also Carollo v. Cement & Concrete Workers Dist. Council Pension Plan, 964 F.Supp. 677, 684 (E.D.N.Y.1997) (one-half of the post-ERISA accrual rate under any one of ERISA’s accrual formulae satisfies pre-ERISA accrual requirements of ERISA § 204(b)(1)(D)(ii)). In this case; the Plan provided for accrued benefits of three percent of the maximum retirement benefits available per year of post-ERISA service, meaning that an employee with 33 and 1/3 years of post-ERISA service would earn 100 percent of these benefits. Such a plan follows an appropriate benefits formula under ERISA § 204(b)(1)(A). 29 U.S.C. § 1054(b)(1)(A). Likewise, the Plan provided for accrued benefits óf 1.5 percent per year, of pre-ERISA service, one-half the percentage of benefits under the appropriate post-ERISA benefits formula and thus appropriate under ERISA § 204(b)(1)(D). 29 U.S.C. § 1054(b)(1)(D). As the district court correctly noted, neither the Plan’s approach to pre-ERISA service nor its approach to post-ERISA service violates ERISA’s minimal accrual standards, because the Plan provided McDonald with “precisely the accrual required by ERISA and its implementing regulations, not a penny more or less.” McDonald I, 153 F.Supp.2d at 295 n. 42.