Fentron Industries, Inc. v. The National Shopmen Pension Fund

The National Shopmen Pension Fund (Fund) and its trustees appeal from summary judgment in favor of Fentron Industries, Inc. (Fentron) and a class of its employees. The district court found that the actions of the Fund and its trustees, cancelling certain pension credits of the employees, violated various provisions of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001-1381 . We affirm in part, reverse in part, and remand for further proceedings.

1. BACKGROUND

Fentron and Shopmen’s Local Union No. 506 (Union) entered into three successive collective bargaining agreements effective from April 1, 1968 through April 1, 1977. Pursuant to the second and third agreements, Fentron contributed to the Fund on behalf of its employees from April 1, 1971 until April. 1, 1977. Thereafter, the Fund refused to accept Fentron’s contributions because Fentron was no longer party to a collective bargaining agreement.

At the time Fentron began contributing to the Fund, the Fund Plan (1969 Plan) provided that an employee’s pension benefits become nonforfeitable (vested) upon the employee reaching age 50 and accumulating at least ten years of “Pension Credit,” at least five of…