Apponi v. Sunshine Biscuits, Inc.
| Decision Date | 24 June 1981 |
| Docket Number | No. 79-3529,79-3529 |
| Citation | 652 F.2d 643 |
| Parties | 107 L.R.R.M. (BNA) 3094, 2 Employee Benefits Ca 1534 Kay APPONI, et al., Plaintiffs-Appellants, v. SUNSHINE BISCUITS, INC., Defendant-Appellee. |
| Court | U.S. Court of Appeals — Sixth Circuit |
Mike Fain, Bogin & Patterson, Asher Bogin, Dayton, Ohio, for plaintiffs-appellants.
David S. Cupps, Vorys, Sater, Seymour & Pease, Columbus, Ohio, Thomas E. Bezanson, Chadbourne, Park, Whiteside & Wolff, New York City, for defendant-appellee.
Before LIVELY and KEITH, Circuit Judges and COHN, * District Judge.
This case presents issues of contract construction. The contract in question is a pension plan which covered employees at the Sunshine Biscuit Company's Dayton, Ohio bakery. Sunshine closed its Dayton bakery in June of 1972. At that same time, Sunshine terminated the pension plan which covered the bakery workers. A class of former Sunshine employees who had worked at the bakery and who had been covered by the pension plan filed this suit. The workers claimed that they were entitled to benefits under the plan. The district court concluded that the workers were clearly not entitled to benefits. Accordingly, the court granted Sunshine's motion for summary judgment. We think that there are questions of fact that can only be resolved at trial. Accordingly, we reverse and remand for further proceedings.
The factual circumstances surrounding the closing of Sunshine's Dayton bakery are not in issue. What is in issue is whether certain former employees are entitled to benefits under the pension plan. The pension plan itself is relatively short and simple. It reads as follows:
THE COMPLETE TEXT OF THE SUNSHINE PENSION PLAN AS IN EFFECT
1. The Pension Plan is applicable to all covered employees of Sunshine Biscuits, Inc. eligible for retirement on or after January 1, 1958, in accordance with the provisions hereof.
2. An employee is covered by the Pension Plan if he is employed by any of the Company's biscuit, cracker or candy manufacturing plants, cheese plant, flour mills, or branches regularly distributing the finished products of such plants, or is one of any other group of employees to whom coverage under the Plan has been extended by action of the Board of Directors or the Plan's Administrative Committee.
3. Pension benefits under this Plan are not payable to any employee who is a participant under any other Annuity, Retirement, Pension or similar plan which is wholly or partially financed by the Company.
4. The normal retirement date is the first day of the month next following the employee's 65th birthday, if the employee is then in the active employ of the Company.
5. An employee will be eligible to retire on his normal retirement date, provided he has completed 15 or more years of continuous service.
6. The first payment of an employee's pension benefits will be made upon retirement, and subsequent payments will be made monthly thereafter.
7. The amount of normal retirement benefit payable to an employee each month will be determined from his years of service and average monthly earnings for the 5-year period ending on December 31st prior to normal retirement date, in accordance with the applicable table set forth at the end hereof. The computation of "years of service" and "average monthly earnings" is set forth in Paragraphs 9-17 hereof.
8. Benefits will be paid to a retired employee as long as he lives, provided he does not engage in any occupation in competition with or detrimental to the business of the Company or any of its branches, subsidiaries or affiliated companies.
9. "Years of Service" means completed years of continuous service from date of employment to actual or normal retirement date, but in no event beyond normal retirement date.
10. Loss of time due to accident incurred in the course of employment will be counted as continuous service.
11. Military leaves of absence will be counted as continuous service if the employee returns to employment in accordance with the terms specified by applicable law or in his leave.
12. Leaves of absence exceeding 9 months in duration will break continuous service, except in cases of serious personal circumstances such as illness or accident, where leaves of absence are extended with the written approval of the Company.
13. Lay-offs exceeding 9 months in duration will break continuous service.
14. If an employee leaves the service of the Company and is subsequently re-employed, the date of re-employment will be used in determining his continuous service.
15. "Average Monthly Earnings" means the employee's average monthly base pay for the 5-year period ending on December 31st prior to his actual or normal retirement date, excluding overtime compensation, premium pay and any other extra remuneration.
16. If an employee has been paid on an hourly, weekly, semi-monthly or bi-weekly basis, his earnings will be converted to their monthly equivalent.
17. If an employee has lost earnings as a result of absence from work due to sickness or accident for a period of 30 consecutive calendar days, each such period will be disregarded in computing his average monthly earnings.
18. If an employee becomes permanently and totally disabled during active employment with the Company when he is age 45 or more and has 15 or more completed years of continuous service at the time he becomes disabled, he will be eligible to be retired on a disability pension.
19. An employee will be considered to be permanently and totally disabled by the Administrative Committee upon receipt of a certificate to that effect from a physician designated by the Company, or upon such other proof as the Committee may prescribe.
20. Disability pensions will be paid beginning with the 7th month from the commencement date of the disability.
21. The amount of disability pension payable to an employee each month will be $45, or an amount computed as follows, whichever is greater:
(a) Determine the amount applicable to the employee's years of service and average monthly earnings for the 5-year period prior to the date of commencement of disability in accordance with the applicable table set forth at the end hereof.
(b) Reduce the amount determined under (a) by 6% for each year or fraction thereof prior to age 62.
(c) To the result determined in accordance with (a) and (b), add 10%.
(d) Round off the amount determined in accordance with (c) to the nearest dollar.
(e) In no case shall the amount determined in accordance with (d) exceed the amount determined in accordance with (a).
22. The Company reserves the right to require proof of continuation of permanent and total disability from time to time, and may terminate disability pensions if proof is not provided.
23. An employee will be eligible to retire early, provided he is at least 55 years of age and has completed 15 or more years of continuous service.
24. An employee may apply for early retirement for reasons other than permanent and total disability, with the understanding that he will not engage in any occupation in competition with or detrimental to the business of the Company or any of its branches, subsidiaries or affiliated companies.
25. The amount of early retirement benefit payable to an employee each month will be computed as follows:
(a) Determine the amount applicable to the employee's years of service and average monthly earnings for the 5-year period prior to the date of early retirement in accordance with the applicable table set forth at the end hereof.
(b) Reduce the amount determined in accordance with (a) by 6% for each year or fraction thereof prior to age 62.
(c) Round off the amount determined in accordance with (b) to the nearest dollar.
26. (a) At any time before payment of benefits is to begin an employee may elect to take a reduced pension of equivalent actuarial value payable to the employee for life and to a designated beneficiary for life if the beneficiary survives him. Each such election shall become effective on an effective date (provided the employee is then living) to be specified therein that must be at least two years after filing of the election.
(b) If optional election of a reduced pension shall not have been made and become effective as provided in sub-paragraph (a), retirement benefits will be paid for 36 months from date of retirement, provided at least one payment shall have been made; if death occurs before a retired employee receives 36 monthly payments, his retirement benefits will continue to be paid to his beneficiary after his death for the remainder of the 36-month period.
27. Benefits under the Pension Plan are in addition to the benefits to which a retired employee may be entitled under the Social Security Law.
28. No employee shall have the right to assign, transfer or otherwise to subject to lien the benefits under the Pension Plan, except as may be otherwise provided or required by law.
29. The cost of the Pension Plan is to be borne entirely by the Company.
30. Nothing in this Pension Plan in itself shall give any employee the right to be retained in the employ of the Company.
31. An Administrative Committee, appointed by the Board of Directors, shall administer the Pension Plan. The determination of the Committee as to all administrative and interpretive matters and the application of the Pension Plan shall be conclusive.
32. The Company has every intention of continuing the Plan indefinitely. However, should unforeseen events occur in the future, the Company reserves the right to modify or terminate the Plan.
The key provision of the pension plan which is in dispute here is paragraph 23....
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