The Retirement Plan Company (TRPC)/an ABG firm
Compensation Strategies Group, Ltd.
Nova 401(k) Associates
ERISA Services, Inc.
Atlantic Pension Services Inc
Nicholas Pension Consultants
Creative Pension Consultants, Inc.
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|Seventh Circuit: Disputed Benefit Calculation Without Explanation Is Arbitrary and Capricious (PDF)|
U.S. Court of Appeals for the Seventh Circuit
May 12, 2015
"The district court found Continental's 2012 decision to be arbitrary and capricious because it is not based on the Plan's definition of 'compensation' -- at least is not demonstrably based on that definition.... No matter how many times Continental rattles off the phrase 'benefit salary' -- which it has done an awful lot -- this is not an explanation of the 2012 decision because it leaves everyone in the dark about how Reilly's qualifying compensation was calculated. An explanation-free decision is arbitrary and capricious.... The court needed to determine (or allow the administrator to determine) the right number, not just to assume that whatever had been estimated in 1999 is Reilly's entitlement.... The district court's decision cannot stand, because Reilly has not tried to show that $5,400 is the only possible outcome of a proper calculation process." [Reilly v. Continental Casualty Co., No. 14-2888 (7th Cir. May 6, 2015)]
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