Lyles v. Lucent Technol Inc
Lyles v. Lucent Technol Inc
Opinion
IN THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
No. 02-20778 Summary Calendar
JERRY LYLES,
Plaintiff-Appellant,
versus
LUCENT TECHNOLOGIES INCORPORATED,
Defendant-Appellee.
Appeal from the United States District Court for the Southern District of Texas (USDC No. H-01-CV-1285) _______________________________________________________ November 20, 2002
Before REAVLEY, SMITH and STEWART, Circuit Judges.
PER CURIAM:*
Jerry Lyles appeals the district court’s decision entering summary judgment
on his ERISA claim in favor of his former employer Lucent Technologies, Inc. The
* Pursuant to 5TH CIR. R. 47.5, the Court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5TH CIR. R. 47.5.4. sole issue presented by his appeal is whether the plan administrator and claims
review committee abused their discretion by interpreting provisions of the Lucent
Income Retirement Plan (“LIRP”) to deny Lyles’s eligibility for a service pension.
We affirm.
Jerry Lyles began his employment with Southwestern Bell, Lucent’s
predecessor, on August 31, 1971. Lucent sold its Growing and Emerging Markets
(“GEM”) division, in which Lyles worked, to Expanets on March 31, 2000.
Pursuant to the sale agreement between Lucent and Expanets, all GEM employees
were terminated by Lucent and rehired by Expanets. At the time of his termination
by Lucent, Lyles had worked for the company for 28 years, seven months, and one
day, and he was 48 years, four months, and 26 days old. In order to be eligible to
receive service pension benefits, Lucent employees terminated prior to December
31, 2000 must be no less than fifty years of age and complete a “Term of
Employment” of at least thirty years at the time of their termination. LIRP §
4.1(a)(ii).
The LIRP defines “Term of Employment” as “a period of continuous
employment of an Employee in the service of one or more Participating Companies
or Interchange Companies.” Id. at § 2.44. The LIRP also contains a “Transition
Leave of Absence” provision (“TLA”), which allows employees who are terminated
2 due to a force management plan or sale of a part of Lucent’s business, and who are
within one year of the age or Term of Employment requirements for a service
pension, to attain eligibility despite their early termination. Id. at § 4.1(d)(i).
Lucent’s plan administrator and claims review committee determined Lyles did not
qualify for a TLA because his Term of Employment was less than 29 years, and he
was less than 49 years old, at the time of his termination.
Lyles availed himself of the claims review procedure established by the LIRP
by first presenting his claim to the plan administrator and then to the Employee
Benefits Committee (“EBC”). Benefit determinations by ERISA plan administrators
or fiduciaries are reviewed under a de novo standard “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(1989). Where the administrator has discretionary
authority, we review factual determinations of eligibility for plan benefits under the
abuse of discretion standard. Sweatman v. Commercial Union Ins. Co.,
39 F.3d 594, 597-98(5th Cir. 1994); Pierre v. Connecticut Gen. Life Ins. Co.,
932 F.2d 1552, 1562(5th Cir. 1991).
The LIRP explicitly provides that the EBC has “sole and complete
discretionary authority and control to . . . [determine] all question relating to
3 eligibility for participation and benefits, interpretation of all Plan provisions, . . . and
construction of disputed or doubtful terms. Such decisions shall be conclusive and
binding on all parties and not subject to further review.” LIRP § 3.4. Thus, the
determination of the EBC can only be set aside upon a showing that the EBC
abused its discretion.
Lyles contends that he is eligible for a TLA because he has 29 “Years of
Service,” defined by the LIRP as “a computation period in which an Employee
completes 1,000 Hours of Service. For purposes of determining 1,000 Hours of
Service, an Employee will be deemed to have completed 50 Hours of Service for
each week in which the Employee completes one or more Hours of Service.” LIRP
§ 2.47. During his twenty-ninth year at Lucent, Lyles had completed seven months
of service, or 28 weeks. Thus, pursuant to the LIRP, Lyles completed 28 Years of
Service and 1400 Hours of Service, for a total of 29 Years of Service. According to
Lyles, this entitles him to a TLA under Section 4.1(d)(i) of the LIRP.
The difficulty with this interpretation is that it tries to join the words “Years
of Service” in Section 2.47 (determining the time of employment required for initial
plan participation and eligibility for a deferred vested pension) and Section 4.1(a)(ii)
(determining the years of employment required at termination for service pension
benefits). Nothing in the plan warrants this joinder or an interpretation of “years” in
4 Section 4.1(a)(ii) to mean anything but calendar years. The decision of the
administrator and review committee must prevail.
AFFIRMED.
5
Reference
- Status
- Unpublished