American International Group, Inc. Amended and Restated Executive Severance Plan v. Guterman, No. 10-CV-9390, 2011 BL 233831 (S.D.N.Y. Sept. 13, 2011) In a declaratory judgment action, the U.S. District Court for the Southern District of New York held that the American International Group, Inc. (AIG) Compensation and Management Resources Committee (Committee), administrator of AIG's Amended and Restated Executive Severance Plan (Plan), did not abuse its discretion in denying severance benefits to Steven Guterman, a former AIG Vice President. The Court concluded that the Committee reasonably determined that Guterman resigned by not accepting the offer of a new position and that the Plan's plain language did not include his resignation as a "Covered Termination." The Court thus granted summary judgment to the Committee and the Plan on Guterman's counterclaim and cross-claim for benefits under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq.
AIG Offered Guterman a New Position, Which He Did Not Accept
The Plan Denied Guterman's Benefits Claim and Sought Declaratory Relief
Conflict of Interest
Guterman Was Not Entitled to Benefits Pursuant to the Plan's Plain Language
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