The Board of Trustees of the Sheet Metal Workers' National Pension Fund - Page 20




                                       - 20 -                                         
          adopted, although it was eliminated in 1976.6)  Respondent                  
          submits that this Court should adopt the rationale of Hickey v.             
          Chicago Truck Drivers Union, supra, and decline to distinguish              
          between the case of participants who retire before a COLA is                
          adopted and those who retire afterwards.  Respondent cites                  
          language in Hickey to the effect that--                                     
               viewing the Plan as a whole, the COLA is an essential                  
               element of the normal retirement benefit.  The COLA                    
               ensures that the retirement benefits will not diminish                 
               in real value over time.  It provides the additional                   
               retirement income each month that is necessary to                      
               maintain the value of the retirement benefits.  [Id. at                
               468.]                                                                  
               Respondent’s argument would have some force if the opinion             
          in Hickey had made an affirmative holding that the COLA was an              
          accrued benefit for pre-1974 retirees.  It did not.  We instead             
          accept the conclusion of the court in Scardelletti v. Bobo,                 
          supra, which found Hickey to be distinguishable.  In the case               
          before it, the court in Scardelletti observed that “Here,                   
          beneficiaries who retired before 1991 did not accrue any COLA               
          benefit.”  Id.  The court stated:                                           
                    Although * * * the Hickey court did not                           
               distinguish between pre-1973 and post-1973 retirees, it                
               does not necessarily follow that that distinction is                   
               irrelevant for determining whether the benefits were                   


               6 In Shaw v. Intl. Association of Machinists & Aerospace               
          Workers Pension Plan, 563 F. Supp. 653, 655 (C.D. Cal. 1983),               
          the District Court’s opinion is silent on this fact as well,                
          although it does quote from a description of the “living trust”             
          dated 1969, some 6 years before the plaintiff retired and some 7            
          years before the “living pension” was terminated.                           





Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011