Opinion ID: 765804
Heading Depth: 2
Heading Rank: 1

Heading: facts

Text: 3 From October 1962 until April 1967, Terrence Shields worked for Truck Rail Terminals (TRT) and was a member of the Chicago Truck Drivers Union. In April 1967, TRT merged with Lasham Cartage, whose drivers belonged to Local 705, International Brotherhood of Teamsters (Local 705). Before the merger, the Secretary-Treasurer of Local 705 told the TRT drivers that, for purposes of health, welfare and pension benefits, they would be given credit for their time with TRT if their service with TRT and Lasham Cartage was continuous. He also sent them a letter, dated March 31, 1967, to the same effect. Mr. Shields and 35 other TRT drivers joined Local 705 and started to work for Lasham Cartage. 4 In the summer of 1967, Mr. Shields complained to the National Labor Relations Board (NLRB) about his loss of seniority due to the merger. He contended that Local 705 should have inserted him into the seniority roster with the Lasham Cartage drivers according to the amount of time he had worked at TRT rather than placing him behind the Lasham Cartage drivers. Mr. Shields claims that the NLRB's decision rejecting his seniority claim relied on the fact that he was to receive health, welfare, and pension credit for his time with TRT prior to the merger. 5 In 1986, the Local 705 Pension Plan introduced a 30 years and out pension, also called the 30-Year Service Pension. Eligibility for this pension requires 30 years of future benefit service, which is defined as employment with a contributing employer--an employer that contributes to the pension fund. Mr. Shields believes that he became eligible for this pension in October 1992 (30 years after he began at TRT). He contemplated retiring in November 1992 but was informed that he would be eligible only for the 25 years and out pension or the 30 year reciprocal pension rather than the more valuable 30 years and out pension. Because TRT was not a contributing employer, he was told, his 4.5 years of service with TRT was not future benefit service but instead was only past benefit service, which counts only toward the reciprocal pension. As a result, he qualified only for the 25 years and out pension or the 30 year reciprocal pension. 6 In ill health, Mr. Shields retired in January 1994. He began receiving benefits under the 30 year reciprocal pension on February 1, 1994. Mr. Shields also receives medical coverage under the Local 705 Health and Welfare Plan (Health Plan). Health Plan premiums are automatically deducted each month from the plaintiff's pension payment.