Cite as: 525 U. S. 432 (1999)
Opinion of the Court
Justice Thomas delivered the opinion of the Court. Five retired beneficiaries of a defined benefit plan, subject to the terms of the Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. 832, as amended, 29 U. S. C. § 1001 et seq., filed a class action lawsuit against their former employer, Hughes Aircraft Company (Hughes), and the Hughes Non-Bargaining Retirement Plan (Plan). They claim that Hughes violated ERISA by amending the Plan to provide for an early retirement program and a noncontribu-tory benefit structure. The Ninth Circuit held that ERISA may prohibit these amendments. We reverse.
I
According to the complaint, Hughes has provided the Plan for its employees since 1955. Prior to 1991, the Plan required mandatory contributions from all participating employees, in addition to any contributions made by Hughes.1 Section 3.1 of the Plan defines Hughes' funding obligations:
"The cost of Benefits under the Plan, to the extent not provided by contributions of Participants . . . shall be provided by contributions of [Hughes] not less than in such amounts, and at such times, as the Plan Enrolled Actuary shall certify to be necessary, to fund Benefits under the Plan . . . ."
In addition, § 3.2 provides that Hughes' contributions shall not fall below the "amount necessary to maintain the quali-National Employment Lawyers Association by Stephen R. Bruce, Jeffrey Lewis, and Paula A. Brantner.
Mary Ellen Signorille and Melvin Radowitz filed a brief for the American Association of Retired Persons as amicus curiae.
1 This arrangement is commonly referred to as "contributory," as compared to a plan whose members do not make contributions, which is commonly referred to as "noncontributory." See generally S. Bruce, Pension Claims 22 (2d ed. 1993). But a contributory plan should not be confused with a "defined contribution plan" as defined by ERISA § 3(34), 29 U. S. C. § 1002(34).
435
Page: Index Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: October 4, 2007