Mary Brug v. The Pension Plan of the Carpenters Pension Trust Fund for Northern California

This is an action by a clerical employee of a union claiming pension benefits for disability retirement. She became a beneficiary of the Pension Plan under an amendment, adopted by the Trustees of the plan, effective June 1, 1975. The amendment and implementing regulations included certain clerical workers as beneficiaries. In March 1976 the Trustees rescinded the amendment and the regulations. Prior to the rescission of the amendment and regulations she became disabled and made application for disability retirement, for which she was eligible at the time. The Trustees delayed action on her application until after the rescission of the amendment and then denied her benefits on the basis that she was not an employee covered by the plan. The district court upheld the action of the Trustees and entered judgment against the plaintiff. The issue is whether the rescission of the amendment could be applied retroactively so as to exclude the plaintiff as a covered employee. We hold that it could not, and that the action of the Trustees was arbitrary and capricious in not applying the terms of the Pension Plan in effect at the time that she applied for the pension benefits for which she…