Opinion ID: 172426
Heading Depth: 1
Heading Rank: 3

Heading: The 1993 Revisions to the U.S. West Pension Plans

Text: Effective January 1, 1993, U.S. West merged its two 1984 pension plans into one (the 1993 Pension Plan), and, in doing so, effectively revised certain provisions of the two 1984 plans. In particular, § 7.11 of the 1993 Pension Plan, entitled Termination of Death Benefits, provided as follows: Effective February 28, 1993, the provisions of this Article VII [covering Death Benefits] shall not apply to individuals first hired on or after March 1, 1993. The survivors of any individual first hired on or after March 1, 1993 shall not be entitled to any benefits under this Article VII. Individuals who have a Term of Employment that includes any period prior to March 1, 1993, including individuals who are re-employed on or after March 1, 1993 and whose Term of Employment is bridged so that it includes periods before March 1, 1993, shall be entitled to a frozen benefit under this Article VII as of February 28, 1993. For purposes of calculating the frozen benefit, Wages under Section 7.9 shall be based on the last twelve months of employment preceding March 1, 1993. Id. at 670. In short, § 7.11 limited eligibility for the Pensioner Death Benefit to individuals hired on or before March 1, 1993, and it prospectively froze the payment level for the benefit. The 1993 Pension Plan, like the two preceding 1984 plans, included a reservation of rights clause: U S WEST expects this Plan to be permanent, but as future conditions cannot be foreseen it reserves the right to amend the Plan at any time, without prior notice to anyone.    Amendments may modify the rights and interests of Employees who are Participants in the Plan at the time thereof as well as future Participants but amendments may not diminish the accrued benefit of any Participant as of the effective date of such amendment or divert any funds in the Trust to purposes other than for the exclusive benefit of Participants and their beneficiaries. Id. at 671. Lastly, the 1993 Pension Plan, unlike the two preceding 1984 plans, expressly defined the term accrued benefit to exclude any death benefits. Id. at 665.