Write Your ERISA Summary Plan Description To Inform – And To Win

In June, 2015, the United States Court of Appeals for the Sixth Circuit, in Pearce v. Chrysler Group, L.L.C. Pension Plan, No.13-2374, again told an employer that it may have failed to adequately describe an employee benefit plan limitation and sent the case back to the lower court for further proceedings.

On the cusp of its bankruptcy filing, Chrysler offered certain employees a new incentive—$50,000 in cash plus a $25,000 voucher towards a new car—to elect early retirement. Chrysler's pension plan already included a "30-and-Out" benefit to help early retirees make ends meet until they became eligible for Social Security benefits. Chrysler provided Pension Statements to Mr. Pearce and others, and advised them to consult the Summary Plan Description (SPD) for more details.