Pension Benefit Claims

This week’s notable decision comes from the Sixth Circuit in Zirbel v. Ford Motor Company, ___F.3d___, 2020 WL 6704157 (6th Cir. 2020). Plaintiff Donna Zirbel received a $351,000 retirement-benefits payment from Ford Motor Company (“Ford”). But the payment was two sizes too big. When Ford learned of the mistake, it asked for the extra money back. Zirbel refused. She sued Ford, seeking a declaration that she could keep the money. Ford stood by its decision. The district court granted summary judgment to Ford, requiring Zirbel to return the $243,190 in overpayments. Plaintiff appealed and the Sixth Circuit affirmed. 
Continue Reading Sixth Circuit Permits Ford Motor Company an Equitable Lien on Overpaid Retirement Benefits

This week’s notable decision is Black v. Pension Benefit Guar. Corp., No. 19-1419, __ F.3d __, 2020 WL 5201400 (6th Cir. Sept. 1, 2020). Plaintiffs in this case were retirees of Delphi Corporation, an automotive parts supplier and former subsidiary of General Motors. In 2005, Delphi filed for bankruptcy and sought to terminate its pension benefit plan for its salaried workers, including Plaintiffs. The Pension Benefit Guaranty Corporation (“PBGC”) then stepped in and notified Delphi that while it agreed the plan should be terminated, it would seek to be appointed as statutory trustee of the plan. PBGC filed a new civil action to adjudicate termination and transfer of the plan. The bankruptcy court then confirmed Delphi’s bankruptcy plan, which terminated the pension plan. PBGC responded by voluntarily dismissing its civil action, after which it reached a termination and trusteeship agreement with Delphi. 
Continue Reading Sixth Circuit Rules in Favor of PBGC in Dispute over Termination of Delphi Corporation’s Pension Plan