DENISE COTE, District Judge.
Plaintiff Aries Arditi contends that his employment agreement gives him a right to insist on a monthly pension benefit that is calculated pursuant to the terms of the pension plan that were described in that agreement, as opposed to the amended pension plan as it existed at the time of his retirement. He has moved to remand this action to state court on the ground that it is a simple breach of contract action and is not preempted by Employee Retirement Income Security Act ("ERISA"), 29 U.S.C. §§ 1001,
The following undisputed facts are taken from the complaint and documents integral to it. Arditi was employed by Lighthouse from 1982 to 2000, and accrued 18.83 years of service credit under the Lighthouse Pension Plan ("Plan"). After he left Lighthouse, the company amended its Plan to add a Rule of 85, which entitled any qualified employee to retire and collect her/his pension benefit
In a separate provision, the Plan acknowledged that Lighthouse retained the right to amend the Plan. It read, that "Lighthouse reserves the right at any time, by action of the Board, to modify or amend the Plan in whole or in part. . . ."
Arditi, in reliance on the Rule of 85 amendment to the Plan returned to Lighthouse, beginning work on July 1, 2002. His written employment agreement ("Agreement") was contained in a letter of June 13, 2002, which was signed by both parties. The Agreement reads in pertinent part:
(Emphasis supplied.)
On June 30, 2007, Lighthouse froze the Plan, which had the effect of stopping accrual of service time for pension calculation purposes for all members of the Plan.
On September 30, 2010, Arditi filed a lawsuit in state court against Lighthouse asserting two causes of action for breach of contract and a declaratory judgment. Lighthouse removed the action to federal court, where it was assigned to this Court as 10 Civ. 7860. Arditi promptly dismissed the action, repleaded his claims, and refiled the lawsuit in state court on November 2, 2010. The re-filed action contained the same two causes of action, but eliminated certain direct reference to the Plan and to ERISA. The action was removed again to federal court.
In the current complaint, Arditi seeks to recover an amount equal to the pension payments that he contends Lighthouse improperly withheld and a judicial declaration that he is entitled to an amount calculated by including in full his service to retirement as required under the Agreement. He asserts that if the Plan had not been frozen, he would have been entitled to a monthly pension payment of $7,132.79 per month or $1,116.28 more than he currently receives. The complaint alleges two claims: a breach of contract claim for enforcement of the Agreement, and a request for a declaration that Arditi is entitled to receive this amount under the Agreement.
The motion to remand and the motion to dismiss each require a determination of whether the Plan is a critical element of Arditi's claims. If it is, then Arditi's state law claims are preempted by ERISA and must be dismissed because the Agreement cannot convey greater benefits under the Plan than are available to other Lighthouse employees.
Whether ERISA preempts a state law cause of action is a question of law.
In particular, courts "are reluctant to find that Congress intended to preempt state laws that do not affect the relationships among" the core ERISA entities, that is, beneficiaries, participants, administrators, employers, trustees and other fiduciaries, and the ERISA plan itself.
The artful pleading rule prevents plaintiffs from "avoid[ing] removal" to federal court "by declining to plead necessary federal questions."
Arditi's breach of contract claim, and its associated claim for a declaration of his contractual rights, are each preempted by ERISA. The benefits Arditi seeks are those that were conveyed by the Plan at the time he rejoined Lighthouse. They are benefits which are conveyed upon vested Lighthouse employees pursuant to the Plan. While the Agreement described the Plan benefits that were in effect at the time of the Agreement, and did so accurately, Arditi essentially seeks to have the Agreement supersede the Plan and remove from the Plan the authority it vests in Lighthouse to amend the Plan. In other words, Arditi contends that the Agreement's statement that the amount of time Arditi worked at Lighthouse in the future "will be added" to his credited years of service prevented Lighthouse from changing the Plan's mechanism for calculating that particular retirement benefit. Thus, through this action, Arditi seeks to require the Plan's administrator "to follow a standard inconsistent" with the operation of the Plan vis a vis every other Plan participant who would be affected by the Rule of 85.
Neither
In
Having concluded that Arditi's state law causes of action are preempted by ERISA, it is also appropriate to dismiss those causes of action. Arditi has not brought any claim pursuant to ERISA to challenge either the authority of Lighthouse to amend its Plan or the reliability of the calculation of his pension benefit under the Plan. Accordingly Arditi's lawsuit must be dismissed for failure to state any plausible claim.
The plaintiff's November 15, 2010 motion to remand is denied. The defendant's November 19 motion to dismiss is granted. The Clerk of Court shall enter judgment for the defendant and close the case.
SO ORDERED.