FAQ
The “Golden 80” and “Golden 90” Pension Benefits
In July 2010, the Bakery & Confectionery Union & Industry International Pension Fund Pension Plan was amended to eliminate the early retirement pension benefits known as “Golden 80” and “Golden 90” for members who were no longer employees of Union companies. These benefits provided a full pension to workers with combined ages and years of service of 80 and 90 years.
Lawsuit Against the Union
Several pension participants sued the Bakery and Confectionery Union and Industry International Pension Fund Pension Plan, claiming that the elimination of the “Golden 80” and “Golden 90” benefits violated the anti-cutback provision of the Employee Retirement Income Security Act (ERISA), which prevents plans from reducing or eliminating certain accrued benefits. Plaintiffs contended that the early retirement benefits in the plan constituted accrued benefits that should be protected even after employment separation.
In June 2012, Judge Briccetti from the U.S. District Court for the Southern District of New York granted plaintiffs’ motions for judgment on the pleadings and denied the defendant’s motions. The Court held that under ERISA, the amendment unlawfully removed the ability of separated employees to qualify for their early retirement benefits.
The case was appealed, and in 2013, the U.S. Court of Appeals for the Second Circuit upheld the decision that certain plan participants would qualify under Golden 80 and Golden 90, even though they were no longer employed in unionized bakery positions.
Seeger Weiss partners Christopher A. Seeger and Diogenes P. Kekatos helped lead the litigation. Seeger was appointed Interim Co-Lead Counsel in July 2011 on behalf of 25 plaintiffs in two consolidated cases. Representing the plaintiffs and a proposed nationwide class, Seeger Weiss’ attorneys argued that the 2010 amendment removing Golden 80 and 90 pension benefits for eligible former workers violated ERISA’s prohibition against reducing vested and accrued benefits.