WILMINGTON, Del. A federal court has ruled against the former CEO of Diamond State FCU who claims the successor to her credit union, Sussex County FCU, owes her more than $535,000 in retirement and health care benefits after it terminated her.
In her suit, Paula Campbell claims that Sussex County FCU is responsible to abide by the terms of a retirement plan she had with the board of Diamond State, which she left in 2007 to go to work for Sussex County FCU. Sussex County FCU eventually acquired Diamond State FCU in a March 2009 merger, but terminated Campbell from her $66,611-a-year job six months later, in October 2009.
Her suit, filed in U.S. District Court for the District of Delaware, alleges the refusal to honor the retirement plan violates the terms of the Employee Retirement Income Security Act, or ERISA.
In asking for a summary judgment, Sussex said Campbell’s Diamond State FCU retirement plan is unenforceable because it did not did not require here to work for any additional period of time, something she did not do. “Any promise set forth in the Campbell Plan was not enforceable because there was no bargain for her to perform in light of her admission that she was not required to work for any additional period of time and could have retired immediately after the Plan was adopted,” argued the credit union.
In addition, Sussex argued that it is not obligated to provide Campbell with health insurance because her termination makes her ineligible to enroll in the health insurance plan Sussex maintains for its employees.
The court granted the motion for summary judgment in favor of Sussex County FCU.
