Cite as: 510 U. S. 86 (1993)
Opinion of the Court
adjustment," a mechanism for converting the book value of the transferred assets to market value.
While Harris in fact used these various methods to effect withdrawals from the Pension Administration Fund, Hancock maintains that only the original method—conversion of the Pension Administration Fund into guaranteed benefits— is currently within the scope of Harris' contract rights. In May 1982, Hancock gave notice that it would no longer make nonguaranteed benefit payments. Agreed Statement of Facts ¶¶ 82-87, id., at 97-98. And since 1981 Hancock has refused all requests by Harris to make transfers using "rollover" procedures. Agreed Statement of Facts ¶ 79, id., at 96.
Harris last exercised its right to convert Pension Administration Fund accumulations into guaranteed benefits in 1977. Agreed Statement of Facts ¶ 81, id., at 97. Harris contends, and Hancock denies, that the conversion price has been inflated by incorporation of artificially low interest rate assumptions.
One means remains by which Harris may gain access to GAC 50's free funds. Harris can demand transfer of those funds in their entirety out of the Pension Administration Fund. Harris has not taken that course because it entails an asset liquidation adjustment Harris regards as undervaluing the plan's share of Hancock's general account. In sum, nothing was removed from the Pension Administration Fund or converted into guaranteed benefits between June 1982 and 1988. During that period the free funds increased dramatically as a result of Hancock's continuing positive investment experience, the allocation of a portion of that experience to the Pension Administration Fund, and the absence of any offsetting increase in the Liabilities of the Fund for additional guaranteed benefits.
Harris commenced this action in July 1983, contending, inter alia, that Hancock breached its fiduciary obligations under ERISA by denying Harris any realistic means to make
93
Page: Index Previous 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: October 4, 2007