A former flight attendant has sued Delta Air Lines Inc. and its fiduciaries, alleging that incorrect calculations of pension benefits caused her and other retirees to be short-changed. In the legal profession, information is the key to success. Here, the district court admitted several pieces of extrinsic evidence, including the videotape, and testimony from Dr. Gold, Dr. Mealer, Opeta, and the videographer, without conducting the proper analysis. 1002 0 obj <>/Filter/FlateDecode/ID[<6F2413FFF3E24CE0BB007FBB2A7E94FD>]/Index[991 34]/Info 990 0 R/Length 70/Prev 173380/Root 992 0 R/Size 1025/Type/XRef/W[1 2 1]>>stream Am., 987 F.2d 1017, 1025 (4th Cir.1993) (en banc)) (emphasis added). This should only be necessary once for each IP address you access the site from. An official website of the United States government. For more information, please see the SECs Web Site Privacy and Security Policy. Choosing a payment method depends on your individual needs. The district court's judgment found that Opeta was not totally and permanently disabled within the meaning of the Plan and thus, not eligible for disability retirement benefits. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. See Dishman v. UNUM Life Ins. 3. A defined contribution plan follows the model of a typical 401(k) investment plan. Photo Illustration: Jonathan Hurtarte/Bloomberg Law; Photos: Getty Images, Retiree monthly pensions reduced by up to $314, Judge looks to Social Security Administration practices. While de novo is the correct standard of review in this case, the district court abused its discretion by failing to conduct the proper analysis before admitting extrinsic evidence. Abatie v. Alta Health & Life Ins. 987 F.2d at 1027 (holding that the district court's admission of additional evidence was not an abuse of discretion because the extrinsic evidence was necessary to assist in the understanding of complex medical issues). The Plan itself contains no language suggesting that any dispute between a beneficiary and Northwest must be arbitrated. The downside to the latter is the total annual pension amount paid is lower usually by about 10% and the spouse could pass away before the retired employee. 1001 and 1030). 318 w academy st ,. Conversely, Opeta claims that Dr. Gold unambiguously found that Opeta was both totally and permanently disabled. 46 F.3d 938, 943-44 (9th Cir.1995). The lump-sum option is also beneficial when employees want to pay off all their debt and move into retirement with no monthly expenses beyond simple living expenses. Ioane John OPETA, Plaintiff-Appellant, v. NORTHWEST AIRLINES PENSION PLAN FOR CONTRACT EMPLOYEES, Defendant-Appellee. We concluded that the district court did not abuse its discretion because [w]ith the addition of [the plaintiff's] trial evidence to [the defendant's] evidence already in the administrative record, the district court had a complete record that allowed the court to make an adequate, independent de novo review of the benefits decision. Id. I think you should apply the answers to the questions as the plan says. If you want to request a wider IP range, first request access for your current IP, and then use the "Site Feedback" button found in the lower left-hand side to make the request. The complaint was filed Dec. 10 in a U.S. District Court in Las Vegas. The district court reviews a challenge to an ERISA plan's denial of benefits de novo unless the benefit plan gives the administrator or fiduciary discretionary authority to determine eligibility for benefits or to construe the terms of the plan. Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101, 115, 109 S.Ct. A representative for Delta did not immediately reply to a request for comment on Friday. Plan for Pilots Employed by MarkAir, Inc., 293 F.3d 1139, 1142 (9th Cir.2002) (concluding that a plan conferred discretion because its terms granted the administrator the power and duty to interpret the plan and to decide on questions concerning the plan and the eligibility of any Employee (internal quotation marks and citations omitted)); McDaniel v. Chevron Corp., 203 F.3d 1099, 1107 (9th Cir.2000) (holding that a plan conferred sufficient discretion because the Plan Administrator has the sole discretion to interpret the terms of the Plan) (internal quotation marks omitted); Friedrich, 181 F.3d at 1110 n. 5 (finding that administrator had discretionary authority because plan stated that insurer shall have the sole discretion to interpret the terms of the Plan and to determine eligibility for benefits) (internal quotation marks omitted). Retirement is a glorious time of life most people look forward to with excitement, especially if theyve planned well for those future golden years by tucking away a nice retirement fund to help them live comfortably. In Ingram v. Martin Marietta Long Term Disability Income Plan, 244 F.3d 1109, 1112-13 (9th Cir.2001), we concluded that even though the plan identified the carrier as solely responsible for providing benefits, deciding all claims, and controlling the operation and administration of the plan, those provisions merely identified the plan administrator's tasks, but bestowed no power to interpret the plan, Abatie, 458 F.3d at 964, and therefore de novo review was appropriate. Tenth Floor This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). We emphasized that a district court should not take additional evidence merely because someone at a later time comes up with new evidence and that [i]n most cases only the evidence that was before the plan administrator at the time of determination should be considered. Co., 458 F.3d 955, 962 (9th Cir.2006) (en banc). We reserve the right to block IP addresses that submit excessive requests. In contract employees in its. Learn more about a Bloomberg Law Subscription. The complaint said Delta's benefit calculation formulas called conversion factors for different types of retirement benefits are "materially lower" than required by ERISA. Opeta's counsel attempted to explain to the district court the correct analysis it should apply in ERISA cases to determine whether to admit extrinsic evidence given a de novo standard of review:Counsel: I said you could order it I don't think you should do it either. Agreeing with the Third, Fourth, Seventh, Eighth, and Eleventh Circuits, we held that extrinsic evidence could be considered only under certain limited circumstances. For most employees in the private sector, that means setting up a 401(k) or some other type of retirement account they can contribute part of their paycheck to each month. These benefits fortify a crucial part of the three-legged stool of American retirement consisting of Social Security, employee pensions, and personal savings. There, the district court correctly determined that the plan administrator had prevented the plaintiff from providing medical records to support his claim during its review and the administrative record included only incomplete, illegible, and disorganized medical records. The offers appearing on this site may be from partners which BudgetSmart receives compensation for being listed here. A 401(k) is a type of defined contribution plan. Question 2: Was John Opeta permanently disabled from all employment with Northwest Airlines on May 3, 2002? All participants in this plan are former employees of Northwest, spouses of former employees, or other beneficiaries, the complaint said. PLEASE NOTE: A verification email will be sent to your address before you can access your trial. ( filing fee $ 210, receipt number. Medical tests revealed that he had mild degenerative disc disease in his spine. Anylaw is the free and friendly legal. All rights reserved. Northwest Airlines: Good health insurance, there Was a pension but that was terminated in the last year before the merger with Delta Airlines, Great travel benefit. Answer: Yes, Mr. Ioane John Opeta was permanently disabled from all employment with Northwest Airlines on 05-03-02. Fund managers create a portfolio for their state pension entitlement under a defined contribution plan, diversify the funds into investments and then disburse them after retirement. %PDF-1.6 % The future benefits paid to employees are dependent on the performance of the plan. Dr. Gold was clear and emphatic in those responses that Opeta was totally and permanent[sic] disabled from all employment since January 2002 and that [a]t this time, there is no type of work that Mr. Opeta could participate in Moreover, Northwest's insistence that Dr. Gold be called to testify seems to have been entirely for the purpose of sandbagging him with the secret videotape surveillance, as all of his testimony on direct examination was cumulative of the detailed answers he had previously supplied to Northwest. The possibility of extreme sedentary type of work could be a possibility after further time and appropriate treatment. Moreover, we found that the district court properly excluded additional evidence presented by the plan administrator, because detailed, written reports from the plan's experts already in the administrative record, made it unnecessary for the district court to hear additional testimony from [the defendant's] consultants. Id. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. The additional testimony by Dr. Mealer, Opeta, and the videographer was irrelevant to determining whether the Plan correctly or incorrectly denied benefits based on Dr. Gold's evaluation, which was the only question properly before the district court. Please declare your traffic by updating your user agent to include company specific information. 2. The district court also allowed Dr. Mealer to testify regarding Opeta's medical condition and treatment, as well as his impressions of the videotape surveillance which he had previously viewed as part of his review of Opeta's claim. The best was getting free or reduced airline passes. Regardless of how the companys pension fund investment performs in the future, the employer commits to paying each employee a fixed amount throughout their retirement. AskMoney is part of the Ask family of brands. Dr. Gold testified that it was very unlikely that Opeta could return to work and that he was totally disabled from any employment at Northwest Airlines. Dr. Gold also stated that based on the information that I had then and based on what I still have right now, I would stick to that conclusion. However, on cross-examination Northwest surprised Dr. Gold by playing the videotape. To calculate your benefit estimates click on the button below that applies to you. In 1998, Opeta returned to work for Northwest as a ramp coordinator on light duty, but was terminated from his position as equipment lead supervisor because of his medical condition. Dr. Mealer, the orthopedic surgeon to whom Opeta had been referred by Northwest, and who performed Opeta's surgery, reported that Opeta was temporarily totally disabled, but nevertheless cleared him for work. 181 F.3d at 1111. By Emily Brill (December 14, 2021, 4:18 PM EST) -- Delta Air Lines Inc. has been hit with a proposed class action in Nevada federal court accusing it of shorting thousands of married retirees on benefits in violation of the Employee Retirement Income Security Act. United States District Court for the District of Nevada, Access to case data within articles (numbers, filings, courts, nature of suit, and more. WebFormer Northwest Airlines Workers Sue Delta Over Pensions By Emily Brill Law360 (December 14, 2021, 4:18 PM EST) -- Delta Air Lines Inc. has been hit with a proposed WebRetiree Death Checklist and Survivor Benefits Process Retiree ID Badge Delta Care and Scholarship Fund Retiree Pass Travel To access paycheck receipts (stubs), W-2s, and Stay up-to-date with how the law affects your life. Delta pilots' pension was terminated in a 2005 bankruptcy. Vacation was The administrative record contained still frames from the videotape and textual descriptions of the surveillance, but Northwest never submitted any of these materials to Dr. Gold in connection with his final and binding determination, electing instead to surprise him at trial. Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market. Friedrich, 181 F.3d at 1109. What Are the Different Types of Business Bank Accounts? The district court correctly ruled that the appropriate standard for review of the Plan's denial of benefits is de novo. We review the district court's decision to admit or exclude evidence that was not before the plan administrator for an abuse of discretion. Private sector pension plans often set the percentage at 1% per year, while government-based public pensions usually pay around 2% per year of service. He said there are many others like him, and that they're fighting to get back what they believe is rightly theirs. Pension plans come in two different forms: defined benefit plans and defined contribution plans. Id. De novo review requires the district court to evaluate whether Northwest correctly denied Opeta benefits under the terms of the Plan. It may not be complete. The videotape itself was never part of Dr. Gold's evaluation. To allow for equitable access to all users, SEC reserves the right to limit requests originating from undeclared automated tools. Northwest Airlines Freezes Pension Plans September 9, 2005 (PLANSPONSOR.com) - Northwest Airlines has frozen two pension plans that cover To make the contribution, the airline issued 7.85 million shares from its treasury. Copyright 20082023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. Former Reservations Agent in Minneapolis, MN, Minnesota, Current Agent in Koreatown, Los Angeles, California, Former Reservation Sales Agent in Minneapolis, MN, Minnesota, Former Customer Service Supervisor in Minneapolis, MN, Minnesota, Learn How to State Your Case and Earn Your Raise, Climb the Ladder With These Proven Promotion Tips. 0 To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. Understanding that the retirement path for every person is unique, we recognize that there are solid mile markers along the way that assist in the voyage. If the employee disagrees with Northwest's decision, a doctor acceptable to both the employee and Northwest will make a final and binding determination following an Independent Medical Examination (IME). Dr. Gold's initial determination was based entirely on Opeta's medical records supplied by both parties, as well as Dr. Gold's own personal examination. Glassdoor is your resource for information about the Pension Plan benefits at Northwest Airlines. We disagree and focus instead on the crux of Opeta's argument, which is that the district court should have excluded new evidence and enforced Dr. Gold's final and binding determination according to the terms of the Plan. Even if there was confusion surrounding Dr. Gold's initial assessment, Northwest took the appropriate steps to clarify that determination by requesting that Dr. Gold answer a set of written questions that specifically asked whether Opeta was totally and permanently disabled. Vacation was skimpy to start, at 2 weeks paid, and after over 10 years climbed to 5 weeks. 2hcKxRFArdO`W\d r^b |=D0!R$b0*tY*#I_hr4x. The district court also abused its discretion by admitting the testimony of Dr. Gold, Dr. Mealer, Opeta, and the videographer because the circumstances did not establish that the additional evidence was necessary for the court to conduct an adequate de novo review. If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Copyright 2023, Thomson Reuters. DRC Newsletter. By letter dated March 3, 2003, Northwest described the Northwest contribution of Pinnacle Stock made to the Contract Plan on January 15, 2003 (the March 3 Comment). Opeta, however, suggests that the Plan's language providing for an independent medical opinion, with respect to the determination of total and permanent disability, is in essence an agreement to arbitrate. Because we conclude that none of the extrinsic evidence was necessary to conduct an adequate de novo review, we hold that the district court abused its discretion in admitting the evidence.2. FindLaw.com Free, trusted legal information for consumers and legal professionals, SuperLawyers.com Directory of U.S. attorneys with the exclusive Super Lawyers rating, Abogado.com The #1 Spanish-language legal website for consumers, LawInfo.com Nationwide attorney directory and legal consumer resources. What will be the best performing asset class for 2023? In 2008, a merger brought unionized employees from the airline Northwest into the largely non-unionized workforce of Delta. The company's headquarters is in Atlanta. Best health benefits around, and of course travel benefits! For those in the public sector, pension plans that consist exclusively of employer contributions are much more common. After the first day of proceedings, the district judge ordered Dr. Gold and Opeta into court to testify. Your response will be removed from the review this cannot be undone. Please see our Privacy Policy. The New Benefits Administration System is Here; V3 Employer Self Service (ESS) and Participant Self Service (PSS) are live! Choose your news we will deliver. The IAM National Pension Fund provides participants with a defined-benefit pension plan for their retirement. Please see our Privacy Policy. The IAM National Pension Fund provides participants with a defined-benefit pension plan for their retirement. 685 Third Avenue After the Plan's in-house physician reviewed the medical records, he concluded that while Opeta was totally disabled, he was not permanently disabled from all employment with Northwest. The purpose of our Journey to Retirement (JTR) magazine is to provide a description of important steps for plan participants to consider for staying healthy on their way to enjoying a well-deserved retirement, along with a brief by decade look at the history of the Funds. Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors. The Kearny case is very specific about-well, I guess its not very specific, but it's instructive that the Court is supposed to look at the administrative record to make a ruling.The Court: Well, I would feel much better if Dr. Gold was here.Counsel: Okay.Counsel: Your Honor, all I can tell you is if the Court determines that there is a de novo review and the Court wishes additional evidence, the Court can order it.The Court: I'm going to order Dr. Gold and Mr. Opeta into court.Counsel: Fine.Opeta then filed a set of written objections to Dr. Gold's testimony and the introduction of the videotape and, on the second day of trial, before any witnesses were called, Opeta's counsel again objected to the admission of new evidence. It also showed Opeta using a broom and dust pan with an extended handle to sweep, as well as a hose to water the lawn.
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