Cite as: 525 U. S. 432 (1999)
Opinion of the Court
if it is partially attributable to the investment growth of their contributions.
Therefore, Hughes could not have violated ERISA's vesting requirements by using assets from the surplus attributable to the employees' contributions to fund the noncontribu-tory structure. ERISA's vesting requirement is met "if an employee's rights in his accrued benefit derived from his own contributions are nonforfeitable," assuming that such are not limited to a certain percentage of benefits depending on the employee's years of service. §§ 203(a)(1)-(2), 29 U. S. C. §§ 1053(a)(1)-(2). The vesting provision "sets the minimum level of benefits an employee must receive after accruing specified years of service." Teamsters v. Daniel, 439 U. S. 551, 569 (1979). Otherwise, the "level of benefits" is determined by "the private parties, not the Government." Alessi v. Raybestos-Manhattan, Inc., 451 U. S. 504, 511 (1981). Hence, this provision does not concern items such as a return on investment that fall outside of the definition of "accrued benefit." ERISA §§ 3(23)(A), 203(a); 29 U. S. C. §§ 1002(23)(A), 1053(a). Assuming that an employee's minimum accrued benefit is provided, this section is not implicated. Hughes never deprived respondents of their accrued benefits. Indeed, when it implemented the noncontributory structure, Hughes permitted the Plan's existing participants to switch into the new structure. Since respondents do not allege that Hughes has ever withdrawn accrued benefits or otherwise nonforfeitable interests from the pre-existing members, this vesting claim is meritless.
Respondents further contend that, even if they have no interest in the Plan's assets, the creation of the new contributory structure permitted Hughes to use assets from the surplus attributable to employer and employee contributions for its sole and exclusive benefit, in violation of ERISA's anti-inurement provision. This section provides, in relevant part:
441
Page: Index Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 NextLast modified: October 4, 2007