Rivera vs United Laboratories
Facts: Rivera commenced employment with respondent United Laboratories, Inc. ( UNILAB) UNILAB) on April 7, !"# as senior man$%act$rin& pharmacist. 'he later became irector o% UILA*+s an$%act$rin& ivision. In !"!, UILA* adopted a comprehensive retirement plan " (the (the plan or retirement plan) plan ) s$pported by a retirement %$nd, consistin& o% -r$st F$nd A where it wo$ld p$t in its contrib$tions %or the acco$nt o% the memberemployee (member ( member ) and -r$st F$nd * consistin& o% the contrib$tions o% the members themselves. -he parties do not disp$te that $nder the plan, a member is comp$lsorily retired $pon reachin& the normal retirement date which is the date when the member has reached a&e /0 or has completed 10 years o% service, whichever comes %irst. In !##, Rivera completed 10 years o% service and UILA* retired her p$rs$ant to the terms o% the plan e%%ective e%%ective ecember ecember 1, !##. *ased on her monthly salary o% 23#,000.00 23#,000.00 at that time, and at one month+s terminal basic salary %or every year o% service, Rivera+s retirement bene%its amo$nted to 2#/0,471.3 %rom -r$st F$nd A and2#/,#"#.3 %rom -r$st F$nd *, %or a total o% 2,047,11.11. / Rivera+s accr$ed retirement bene%its $nder -r$st F$nd A and -r$st F$nd * were withdrawn %rom the retirement %$nd and deposited in -r$st F$nd 5, a special acco$nt %rom which she co$ld ma6e withdrawals withdrawals as she pleased. A man$al man$al comp$tatio comp$tation n prepared prepared by the company showed that the %$ll amo$nt o% Rivera+s retirement pay was trans%erred to -r$st F$nd 5. 7 At Rivera+s re$est, UILA* allowed her to contin$e wor6in& %or the company8 she was even promoted to the position o% Assistant 9ice2resident on an$ary , !#!, with a basic monthly salary o% 2"0,014.00, and a %i;ed monthly allowance o% 2#,!00.00. 'he rendered service to the company in this capacity $ntil the end o% !!3, at which time, Rivera retired %rom employment with the company (as distinguished from retirement from the plan ), as UILA* p$t it and as evidenced by a personnel action notice dated Febr$ary !, !!1. # From !!1 to !!4, Rivera served as a personal cons$ltant $nder contract with the Active Research and ana&ement 5orporation ( ARMCO) ARMCO) in !!1 and with FilAsia *$siness 5ons$ltants (Fil-Asia ( Fil-Asia)) in !!4. -hese are UILA*?-@he e%%ective date o% normal or mandatory retirement %rom the 2lan is 10 days a%ter an employee reaches hisher /0th birthday. -he e%%ective date applies to all ran6 and %ile as well as B2s.> 1aphi1 1aphi1
In a lett letter er date dated d an$ an$ar ary y 7, !!" !!" to UIL UILA* A*,, 3 Rivera Rivera as6ed as6ed that that her retire retiremen mentt bene%i bene%its ts be increased in accordance with the amended retirement pro&ram based on her ecember 1, !!3 terminal basic salary, m$ltiplied by her thirty %o$r (14) years o% service with the company. UILA* did not reply to this letter and Rivera made two %ollow$p letters, one dated ecember # , !!" 1 and the other, Febr$ary 3, !!/, 4 reiteratin& her demand %or additional retirement bene%its.
UILA* denied Rivera!ategori!all" > denied her letter demandin& payment o% the $npaid balance o% her retirement bene%its. R$lin&: Ee a&ree with the 5A
