Seventh Circuit -- John Sullivan v. Cuna Mutual

John Sullivan v. Cuna Mutual

(Easterbrook)

Where employees had the ability to retain unused sick days as credit towards future health care, 120M increase in balance sheet after change in medical scheme for retirees didn't represent appropriation of beneficiaries' assets by plan, just a release of future potential liabilities given the decreased scope of coverage.

Unused sick leave is not a plan asset, and therefore not a non-ERISA asset which is governed by state law.

Employer has prerogative to modify plan.

Dissent: While ERISA preempts state remedies, it does not preclude relief according to promissory estoppel/detrimental reliance.