SAME OUTCOME IN HEATH
In a 1995 decision, the U.S. Court of Appeals for the Seventh Circuit echoed the reasoning of the Eleventh Circuit in Seaman when it rein- stated a lawsuit under ERISA Section 510 filed by an employee who was terminated shortly before becoming eligible for an early retirement plan. The Seventh Circuit’s decision came in Heath v. Varity Corp.7
Allan Heath was an employee of Massey Ferguson Parts Company. The company’s early retirement plan allowed employees with at least 30 years of service to take early retirement, regardless of age. In 1988, Massey Ferguson decided to abolish the early retirement plan. However, the company agreed to “grandfather” a certain group of employees with more than 20 years of service; that is, such employees remained eligible to participate in the plan.