Can union plan increase pension benefit of retirees in pay status with

[Guest ssargent]

Retiree asked union pension plan to increase benefits for retirees in pay status (only). Reasoning: his medical costs have increased dramatically since retiring. He stated to the board members that it was legal for them to make this benefit increase without having to increase the current benefits for those still contributing to plan. I see discrimination in favor of a class of participants. He was not asking that all pension benefits be increased across the board, just those who are fully retired and receiving benefits.

The multiemployer audit guidelines address the need to confirm that funds have not been transfered to other union trust funds, i.e. health trust, etc. Anyone know anywhere else to look for information on this? I am familiar with single employer plans, but not multiemployer.

[Guest Stephanie Smithey]

There is a line of cases you may want to take a look at. Specifically, check out Walling v. Brady (3d Cir. 1997) which dealt with using the excess assets of a multi-employer pension fund to help retirees absorb increaased health coverage costs. Also, look at Jacobson v. Hughes Aircraft (Sup.Ct. 1999). These may give you some ideas.