Horvath v. California Federal Bank, 1999 U.S. App. LEXIS 32174 (9^th Cir. December 8, 1999) (unpublished)-This court affirmed the district court's grant of summary judgment for defendants California Federal Bank and the California Federal Bank Retirement Income Plan ("Plan").  Horvath brought an action for additional pension benefits pursuant to 29 U.S.C. § 1132(a)(1)(B).  In 1996, the Plan was amended to create a one-month window in July 1996 during which previously ineligible participants, including Horvath, could elect to receive a lump sum distribution of vested pension benefits (the "New Lump Sum Option") instead of receiving such benefits in the form of an annuity.

Horvath argued that California Federal violated Treasury Regulation 1.417(e)-1(d)(4)(i), which provides in relevant part:  "The time and method for determining the applicable interest rate for each participant's distribution must be determined in a consistent manner that is applied uniformly to all participants in the plan."  Apparently, distributions under the Existing Lump Sum Provisions were calculated using the PBGC Rate in effect as of the month of the distribution, whereas July 1996 distributions under the New Lump Sum Option (including Horvath's) were calculated using the March 1995 GATT Rate.

This court found that forcing the PBGC Rate to be used under the new option would violate the Retirement Protection Act of 1994 (the "RPA"), enacted as part of GATT.  The other remedy—applying the GATT rate to both—would be of no additional benefit to Horvath.  Therefore, he had no basis for a claim under 29 U.S.C. § 1132(a)(1)(B).