DENISE PAGE HOOD, District Judge.
This matters comes before the Court on two separate motions: Defendants' Motion to Recover the Overpayment of Plan Benefits and Plaintiff's Motion for Leave to File Motion to Assess Penalties against Defendant Walgreen Co. The matter is now fully briefed. For the reasons stated in more detail below, Defendants/Counter-Plaintiffs' Motion to Recover the Overpayment of Plan Benefits Received By Plaintiff/Counter-Defendant
Plaintiff/Counter-Defendant Matthew Brown filed this action against Defendants/Counter-Plaintiffs Metropolitan Life Insurance, Walgreen Co., and Walgreens Income Protection Plan for Store Managers on November 6, 2010. On March 4, 2011, Defendants filed a Counterclaim against Plaintiff for repaying of overpayment of long term disability benefits. On June 22, 2011, Defendants filed a motion to dismiss, which the Court denied on March 29, 2012. On March 14, 2013, the Court granted Defendants' motion for reconsideration and granted Defendants' motion to dismiss, dismissing Plaintiff's complaint. All that now remains is Defendants' counterclaim, which is now before the Court.
Defendants argue that Plaintiff is obligated to repay $30,214.80 for overpayment of long term disability plan benefits pursuant to section 502(a)(3)(B)(ii) of the Employment Retirement Income Security Act, 29 U.S.C. §§ 1132(a)(3)(B)(ii). Pursuant to section 502(a)(3), a fiduciary may bring a civil action for equitable relief to enforce the provisions of the Plan. To qualify as equitable relief, the insurance plan must "identif[y] a particular fund, distinct from [the participant's] general assets" and the portion of that specified fund that the plan is entitled to receive. Sereboff v. Mid Atl. Med. Servs., Inc., 547 U.S. 356, 364 (2006). "[S]trict tracing of funds is not required and the fund need not have been in existence when the contract was executed." Gilchrest v. UNUM Life Ins. Co. of Am., 255 Fed. Appx. 38, 44-45 (6th Cir. 2007) (citing Sereboff, 547 U.S. at 364-65). The Sixth Circuit has held that identifying the fund as overpayment of Social Security benefits is sufficient to satisfy Sereboff. Id. at 45-46.
The Plan provides that Defendants are entitled to reduce or offset plan benefits by other income that Plaintiff receives, such as social security benefits.
On September 12, 2006, Plaintiff signed the "Agreement to Reimburse Overpayment of Long Term Disability Benefits"
It would appear that Defendants' request for equitable relief, specifically for repayment of overpaid long term disability benefits is appropriate. The Plan provides that Defendants may recoup overpayment when Plaintiff receives social security benefits. The Plan language is clear that Defendants are entitled to a lump sum payment in the event that Plaintiff receives retroactive social security benefits. The Plan does not seek repayment from Plaintiff's general assets but rather from a specific pool of funds: overpaid benefits.
In response, Plaintiff again argues that Defendants have not relied on the right Plan. However, the Court rejected this argument in its Order Denying Plaintiff's Motion for Reconsideration.
Plaintiff asks the Court for leave to file a motion to assess penalties against Defendant Walgreen Co. based on its alleged failure to provide the correct plan. The Court has already addressed this argument in its Order Denying Plaintiff's Motion for Reconsideration. Specifically, the Plan documents that Plaintiff requests have no relevance to Plaintiff. Plaintiff's requested relief is
Accordingly,
Your benefits under this plan will be reduced by the amount of benefits you are eligible to receive from other sources, such as:
< Social Security
< workers' compensation
< state-mandated or Commonwealth of Puerto Rico-mandated plans,
< any other disability plan which Walgreens sponsors or any other employer sponsors or contributes to,
< any award in a third party claim for a loss that caused or aggravated the disabling condition.
<
An overpayment occurs when it is determined that the total amount paid on your claim is more than the total of the benefits due under this plan. This includes any overpayment resulting from:
< retroactive awards received from sources shown in the Benefit Offset (Reductions) section on page 6;
< fraud or misstatement; or
< any error made in processing your claim.
<