What is the test for determining whether a new eligibility requirement in an employer's retirement plan was arbitrary and capricious?
The following excerpt is from Valle v. Joint Plumbing Industry Bd. (Local 2 U.A.), 623 F.2d 196 (2nd Cir. 1980):
In determining whether the particular application of a new eligibility requirement was arbitrary and capricious, a number of factors should be considered. They include the extent to which the applicant was an intended beneficiary of the plan, the extent to which the amendment retroactively strips the beneficiary of significant service credit, the extent to which the trustees have notified the employee of these and other changes in rules, and the extent to which there is actuarial justification for denying benefits in the particular case. See, e. g., Mitzner v. Jarcho, supra. Examination
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