A pension plan covering California construction workers received the Ninth Circuit’s approval to halt benefits of a man who continued working after his supposed retirement date, according to Bloomberg Law.
On June 5, the Ninth Circuit said the California Field Ironworkers Pension Trust’s decision to suspend benefits for Robert Meakin was based on a good faith “reinterpretation” of guidance from the IRS. The court explained benefit plan administrators are not “shackled” to their original interpretations of the plan.
Meakin was approved for early retirement benefits in 2008 under a plan provision allowing workers in certain positions in the construction industry to receive pensions while still employed. The plan suspended Meakin’s benefits in 2011 after determining the provisions had been interpreted in a way that did not comply with new IRS guidance regarding plan distributions to workers who still are employed.
The Ninth Circuit determined the plan trustees’ decision was reasonable under the Employee Retirement Income Security Act.
