Bressmer v. Federal Express Corporation Long Term Disability Plan, 2000 U.S. App. LEXIS 11024 (2^nd Cir. May 16, 2000) (unpublished)-This court affirmed the District Court's summary judgment against Bressmer's claim that Federal Express wrongfully terminated her long-term disability benefits in violation of 29 U.S.C. § 1132(a)(1)(B).  Under the terms of the Plan in effect at the time she became disabled, she could not receive future benefits unless she could demonstrate, at the end of the two year period, that she met the definition of "total disability."

During the two years that Bressmer collected disability benefits, the Plan amended the definition of "total disability."  This court found that the plan administrator properly used this new definition in evaluating Bressmer's status, since the Plan benefits for "total disability," vested at the time the claimant must make the required showing and not when the claimant first becomes disabled.

Next, this court found that Federal Express's claim for reimbursement or recovery of overpaid benefits was valid.  Under the terms of the Plan, the plan could offset income received from other sources, including benefits under the Social Security Act, against plan benefits.  However, under that Act, "none of the moneys . . . shall be subject to execution, levy, attachment, garnishment or other legal process."  Thus, although the Plan could seek to recoup the overpaid benefits, it could not do so from plaintiff's Social Security lump sum payment.