\, 

I-, I: Pension Benefit Guaranty Corporation ,. '. pffic 1200 K Street. N.W.. Washington. D.C. 200054026 

9 ",MU_ 

Re: Case194506,GlobeManufacturing 

Company (Globe) Hourly Employees Pension Plan (the Plan) 

Dear 1 1 

The Appeals Board reviewed your appeal of PBGC's April 15, 

2004 determination that you are not entitled to a PBGC benefit from 

the Plan. For the reasons stated below, the Board decided that we 

must deny your appeal. 

Determination and Appeal 

PBGC determined that you are not entitled to a PBGC benefit 

because "at the time of your spouse's death, the pension plan 

provisions required that your spouse had to reach age 55 to have a 

survivor's benefit." 

Your April 20, 2004 appeal letter stated as follows: 

"I was told and advised by PBGC that, as a widow of rl (who was employed 

by Globe Mfg. Co. for over 20 years) that I was entitle to 1s pension plan. After many 

conversations with Robin. the determination was made and I am submitting final 

correspondence saying I was entitled to same. 1 don't feel this should be taken from me 

after being advised that I was entitled to same. . . . 

No mention was ever made during any conversations or correspondences that if death 

occurred before age 55 that pension couldn't be collected. Everyone was aware how old 

he was when he died, and the determination was made by your company that it was 

approved." 

Discussion 

PBGC provides pension insurance according to the Employee 

Retirement Income Security Act of 1974, as amended (ERISA). If a 

plan sponsor is unable to support its pension plan, PBGC becomes 

trustee of the plan and pays pension benefits as defined in the 

plan subject to limitations set by Congress under ERISA. 

Records available to the Appeals Board reveal that the Plan 
\ 

I; terminated on March 29, ,2001 and that PBGC became trustee of the .. Plan on July 26, 2001. The'records also show that your husband 

U 

.. died on February 7, 1983, shortly before his 47th birthday while he 

3 was receiving benefits under Globe's Long-Term Disability (LTD) 

2 insurance program. 

When Congress passed ERISA in 1974, it required qualified 

pension plans to provide for benefits payable in the form of a 

Qualified Joint and Survivor Annuity (QJSA) for married 

participants. It was not until August 23, 1984, however, that 

Congress passed the Retirement Equity Act, which required qualified 

pension plans to provide a Qualified Pre-Retirement Survivor 

Annuity (QPSA). A QPSA provides survivor benefits for participants 

who die before they retire or are eligible to retire. Because your 

husband died before 1984, you are not entitled to a QPSA 

As suggested by PBGC's determination letter, PBGC guarantees 

the payment .of a survivor benefit to the survivor of a non-retired 

participant who died before 1984 if the plan provided a preretirement survivor benefit and the participant met the plan's 

eligibility conditions for a pre-retirement benefit when he died. 

While the Plan's governing document did provide a pre-retirement 

survivor annuity, a participant had to attain age 55 to be eligible 

for the pre-retirement survivor benefit. So, because your husband 

died before attaining age 55, you are not entitled to a survivor 

benefit . 

We regret that the outcome of your appeal is not favorable, 

but the Appeals Board must follow the terms of the Plan, ERISA and 

applicable PBGC policy. 

Decision 

Having applied Plan provisions, the law and PBGC's rules to 

the facts in this case, the Appeals Board decided that we must deny 

your appeal. This decision is the agency's final action regarding 

the issues raised in your appeal. You may, if you wish, ask a 

federal district court to review this decision. 

If you need more information from PBGC, please call the 

Customer Contact Center at 1-800-400-7242. 

Sincerely, 

Michel Louis 

Appeals Board Member