Gordon Hansen v. Western Greyhound Retirement Plan and Western Greyhound Pension Trust

Hansen brought suit to compel appellee Trust to pay him early retirement benefits under a collectively bargained pension plan. The district court granted summary judgment for the Trust. We affirm in part, and reverse in part.

Hansen, a bus driver, became physically disabled at age 52. He was placed on unpaid leave of absence. Under the Plan, the Trust provided three retirement benefits: (1) disability retirement benefits, available until age 65; (2) early retirement benefits, available to an active employee at age 55; and (3) deferred vested retirement benefits, available at age 65. Disability retirement benefits were subject to reduction for outside earnings; the other benefits were not.

Hansen applied for and received disability retirement benefits, the only benefits for which he qualified in view of his age. When he reached 55 he applied for early retirement benefits to avoid the offset for outside earnings. The Trust denied the application on the ground that an employee could not change from disability retirement benefits to early retirement benefits unless he first returned to active employment.

Hansen challenges this decision on four grounds. Hansen first argues the Trust…