ERISA 45-day Notification Rule Q&A
1. Will I have notification of change to my pension in time to decide to retire under the old plan?
United must give 45 days notice of any major changes to the plan, even while they are in bankruptcy. Once such notice is given you will have the 45-day period to decide whether to go ahead and retire under the terms of the current plan. If you decide to retire before the end of that 45-day period, then the changes will not apply to you.
2. Will I be given a 45 notification for a change to:
Pension Multiplier - yes
Pension Age – yes
Retirement Medical – yes
Travel Benefits – no, travel benefits are not covered by ERISA, the
law that governs retirement plans. The 45-day notice requirement therefore does not apply to travel benefits.
3. If the judge rules a change to the pension plan, will that change be immediate? Could he rule that the change be retroactive?
Again, changes require 45 days notice. Changes cannot be retroactive.
4. Could an 1114 filing change anything other than retiree medical?
Section 1114 of the Bankruptcy Code applies to changes the company seeks to make, if any, to our retiree medical benefits. The company has indicated again this week that they have not decided whether to pursue such changes. If they decide to do so, the changes could apply to people who have already retired. Therefore, a decision to retire before changes go into effect will not guarantee you protection from changes to the retiree medical benefit if the company decides to petition the court to reduce medical benefits for all retirees under Section 1114.
