ERIC on July 24 filed an amicus brief with the U.S. Supreme Court in the M&G Polymers v. Tackett case.
The brief was prepared jointly by Kirkland & Ellis LLP and Proskauer Rose LLP. ERIC was joined by the American Benefits Council on the brief.
The brief urges the Court to overrule the Sixth Circuit decision that held that the company’s bargained for retiree health benefit was vested based on the Sixth Circuit’s long-standing presumption of vesting of such benefits despite the absence of any language in an agreement providing for such. (Other circuits have adopted a variety of approaches for evaluating the vesting issue, but none has applied the Sixth Circuit approach and the Third Circuit has essentially adopted a presumption that the benefit is not vested).
The ERIC brief specifically argues that vesting should not be held to exist unless there is clear and unambiguous language providing for such.
The case will be heard and decided by the Court in its upcoming term which commences in early October.
Thanks to member companies that have supported the filing of this brief.
We will keep everyone informed of developments in this case.