Opinion ID: 217949
Heading Depth: 3
Heading Rank: 1

Heading: Insurance Plan Description.

Text: In December 1989, Qwest sent a packet of information to employees describing the benefits available under the 5+5 Option. 8 Aplt.App. 1639; 9 Aplt.App. 1797. Included in this information was an Insurance Plan Description (IPD). See 9 Aplt.App. 1797. The first page of the IPD stated, in bolded text, While the plans listed below are the plans currently provided to eligible employees upon retirement, the Company reserves the right to amend or terminate any or all provisions in the future for any reason. Id. at 1797. The next page, in the sub-part labeled Group Life Insurance Program, provided, your Basic coverage ... continues at no cost to you. The amount of coverage is based on one times your pay immediately prior to retirement (rounded up to the next $1,000). However, your coverage will be reduced by 10% beginning on your 66th birthday and each year thereafter up to a maximum reduction of 50% at age 70. Id. at 1798. The district court held that the IPD clearly indicated that Qwest retained the right to amend the Plan, and therefore did not constitute a material misrepresentation. Kerber, 656 F.Supp.2d at 1289. As that is the only reasonable reading, we agree. The first page of the IPD unambiguously states that the plans described are the plans then provided by Qwest, and that Qwest reserves the right to amend or terminate any or all provisions in the future for any reason. 9 Aplt.App. 1797. The statement regarding the maximum reduction of 50% by age 70 clearly indicates that the benefits will not be reduced by the formula below 50%it is not a promise that Qwest would not amend the Plan. Id. at 1798. Accordingly, the Insurance Plan Description does not constitute a material misrepresentation and cannot form the basis for Plaintiffs' breach of fiduciary duty claim.