Opinion ID: 626080
Heading Depth: 2
Heading Rank: 6

Heading: Amendment Eight, Effective March 31, 2007

Text: Two years later, Delta again amended the Plan, effective March 31, 2007. Amendment Eight modified who was eligible for the favorable Social Security offset, but left intact the benefit accrual freeze. At the time Amendment Eight went into effect, Cinotto was still under age 52 and still employed by Delta. Amendment Eight continued to distinguish between participants age 52 and older and those under age 52. Amendment Eight grandfathered in participants who had already reached age 52 by its enactment date, maintaining the status quo that had existed for them under the Plan. But for a participant, such as Cinotto, who had not reached age 52 as of March 31, 2007, Amendment Eight changed the rules. Regardless of whether a participant was eligible for a retirement benefit under Article Five or a termination benefit under Article Six, he would not receive the favorable Social Security offset. Instead, the offset would be determined by assuming the Participant had 2003 Level Pay until the Participant attains age 65. In summary, Amendment Eight did not affect the Social Security offset calculation of (1) an employee who terminated employment prior to age 52 and thus received a termination benefit or (2) an employee who had already reached age 52 by March 31, 2007, and thus was eligible for a retirement benefit prior to Amendment Eight. Rather, Amendment Eight changed the calculation of the Social Security offset for only an employee who was under age 52 on March 31, 2007, (the effective date of Amendment Eight) and not yet eligible for a retirement benefit but who subsequently continued to work for Delta until age 52 and then became eligible for a retirement benefit. Amendment Eight eliminated the possibility that an under-age-52 participant could decrease his Social Security offset (and thereby increase his future retirement benefit) by continuing to work at Delta past age 52 and becoming eligible for a retirement benefit under Amendment Seven's more favorable offset formula (i.e., of 2003 level pay to December 31, 2005, and no pay thereafter). As Delta explained in its notice of Amendment Eight's changes sent to participants: If a participant ultimately receives a termination benefit, the participant's benefit remains the same as it would have been under Amendment Seven. However, if a participant ultimately receives a retirement benefit, the participant's benefit decreases from what it would have been under Amendment Seven.