Opinion ID: 3016835
Heading Depth: 3
Heading Rank: 1

Heading: SERP Social Security Offset

Text: The SERP is a so-called “top hat” pension plan under ERISA. A top hat plan is a 1 Marsh & McLennan Supplemental Retirement Plan, Marsh & McLennan Companies, Inc., and Francis B. Bonsignore as plan administrator will be referred to collectively as “Marsh.” 2 The parties also refer to the U.S. Retirement Plan as the Basic Plan. Its formal title is the Marsh & McLennan Companies Retirement Plan. 2 “plan which is unfunded and is maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly trained employees.” Goldstein v. Johnson & Johnson, 251 F.3d 433, 436 (3d Cir. 2001) (quoting Miller v. Eichleay Eng’rs, Inc., 886 F.2d 30, 34 n.8 (3d Cir. 1989)). Pursuant to Article 4 of the SERP, the benefits a participant receives under it are reduced by the “Social Security Offset” as defined in the SERP. The dispute in this case concerns the definition of “Social Security Offset,” a definition found in Article 1, Section 1.21 of the SERP:
1.21.1 For a Participant who retires at age 65 or thereafter, the estimated monthly primary Social Security benefit to which he is entitled at such time of retirement under the Social Security Act as then in effect on the assumption that he was fully insured for such benefit, made proper application therefor, and does not disqualify himself from receipt of such benefit. 1.21.2 For a Participant who retires prior to age 65, the estimated monthly primary Social Security benefit to which he would have become entitled at age 65 under the Social Security Act as in effect on the day he terminates employment if he had remained in the employ of the Company until age 65 with Monthly Earnings equal to his rate of Monthly Earnings immediately prior to his termination of employment.