Opinion ID: 217949
Heading Depth: 2
Heading Rank: 6

Heading: The 2006 Resolution: Claim 6 of the SAC.

Text: Claim 6 of the SAC alleges that retroactive application of any reduction in life insurance benefits to Pre-1991 Retirees violates the Prior Loss Proviso. 5 Aplt.App. 984. This claim apparently relates to the 2006 Resolution, which Plaintiffs argue was ineffective. See 10 Aplt. App.1959. According to Plaintiffs, because the 2006 Resolution did not effectively reduce life insurance benefits to Pre-1991 Retirees, application of reduced benefits to Pre-1991 Retirees who died after January 1, 2006, and before the date on which an effective amendment was adopted violates the Prior Loss Proviso. See Aplt. Br. 44-45, 47. The district court granted summary judgment to Qwest on Claim 6, holding that the same reasoning [the court] applied in the March 31, 2009 Order [granting summary judgment to Qwest on Claim 5] is applicable here. Kerber, 656 F.Supp.2d at 1293. The court went on to note the similarities between the events surrounding the 2005 and 2006 Resolutions, and concluded that Qwest sufficiently manifested its intent to amend the Plan to reduce the life insurance benefit for Pre-1991 Retirees beginning January 1, 2007, by passing the 2006 Resolution. Id. at 1294. We agree with the district court. In all material respects, the 2006 Resolution is similar to the 2005 Resolution. Like the 2005 Resolution, the 2006 Resolution states, RESOLVED, that the Qwest Group Life Insurance Plan be and hereby is amended to incorporate the design changes approved. 10 Aplt.App.1959. The body of the Resolution provides, Recommendation: that the Director, Employee Benefits, ... be authorized to take all actions appropriate to implement for the 2007 Plan year: ... Change the Basic Life Insurance Benefit for the Pre-1991 Retirees to reduce it to a fixed $10,000 benefit effective January 1, 2007. Id. In affidavits, the members of the PDC stated that the 2006 Resolution was intended to amend the Plan. See 9 Aplt. App.1909-10, 1913-14, 1921. After the 2006 Resolution Qwest sent to plan participants (1) a SMM, (2) a Program Guide, and (3) a Benefit Enrollment Statement reflecting the reduced life insurance benefit for Pre-1991 Retirees. 10 Aplt.App.2049, 2053, 2069. Qwest also sent a letter to the Association of U.S. West Retirees regarding the change. 10 Aplt. App.2074. Finally, Qwest notified Prudential of the change, and Prudential began administering the Plan consistent with the 2006 Resolution. See 9 Aplt.App.1921; 10 Aplt.App.1998-99. Given the similarities between the 2005 and 2006 Resolutions, and the lack of any genuine disputes of material fact as to their effect, our disposition must be the same. Just as with the 2005 Resolution, it is undisputed that the PDC had the power to amend the Plan and the PDC actually amended the Plan by way of the 2006 Resolution. Thus, the reduction in benefits was adopted on September 14, 2006, to take effect on January 1, 2007, and application of the reduced benefits to Pre-1991 Retirees who died after that date does not violate the Prior Loss Proviso. Plaintiffs' arguments regarding Claim 6 are substantially similar to those made with respect to Claim 3, compare Aplt. Br. 44-47, with id. at 37, and we find them unavailing for the same reasons. We affirm the district court's grant of summary judgment on Claim 6 of the SAC.