What should the court decide?

A company wanted to reduce the size of its workforce through an early retirement offer. From past experience, the company realized that employees were reluctant to accept such offers because they assumed that a more generous offer would be forthcoming in the future. The company addressed this matter in the Summary Plan Description (SPD) that it issued to employees for its early retirement program. The SPD stated that if any future early retirement plans were offered, “the benefits would not be as good as those contained in this plan.” Four years later the company adopted another early retirement plan that had more generous benefits than the previous plan. A group of employees who left under the earlier plan sued. What should the court decide? Why?

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