i) 

~ "vc\ PBGC Pension Benefit Guaranty Corporation 

~tKtIn. America'. Pe.laDS l200 K Street. N.W .. Washington. D.C. 20005-4026 

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I 

i DEC - 8 2005 

Re: Appeal 1 I; (Case No: 147176) 

Hanlin Group, :rnc. Retirement Plan (the "Plan") 

Dear Mr·1 I: 

The Appeals Board has reviewed your appeal of PBGC's May 14, 

2004 determination that your client, 1 I, is not enti 1:led 

to receive a PBGe benefit. As explained below, the Board chanjed 

PBGe's determination by finding that any benefit Mr. 1 _ is 

anti. tIed to under the Hanlin Plan should not be offset by any 

amounts attrLbutableto the LCP Chemicals and Plastics Corporation 

Employee Stock Ownership Plan (the "ESOP"). 

Benefit Determination and Appeal 

PBGe's letter advised. Mr. I I that records supplied to PBGe 

by LCP Chemicals and Plastics Corporation, the former Plan sponsor, 

stated that his date of retirement was February 1, 1988. The letter 

also advised him. that he was not due a benefi t from the Hanlin Plan 

because he is eligible for benefits from the ESOP. The letter noted 

that the Plan requires a participant's pension benefit to be offset 

by benefits payable from the ESOP. You stated in your appeal that 

Mr. I I never received any benefits from the ESOP, and that the 

Company went bankrupt. You supplemented your appeal with a sworn 

affidavit from Mr.1 1 statinq that he never received benefits 

from the ESOP. 

Discussion 

The Plan defines a floor pension based on the greatest of three 

formulas. This floor pension is then reduced by benefits payable 

from the ESOP, the Allied Chemical Coroporation Salaried Employees 

Pension Plan and any other covered plan. A payment ll.sting from the 

former Plan Admi.nistrator shows that Mr. I I retired as of 

February 1, 1988, and received quarterly payments from the ESOP from 

1988 to 1989. The listing also shows that no additional benefits 

are payable from the Hanlin Plan because of the ESOP offset. 
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Wi th Mr. I I's permission, the Appeals Board contacted 

Prudentia1 Financia1, the company responsible for making the ESOP 

payments. Prudential Financia1 was unable to provide any evidenoe 

to support the entries from the Plan listing that showed Mr. I I 

retired February 1, 1988 (the first of the month following his 50th 

bi.rthday) and received ESOP payments in 1988 and 1989, or to prov.ide 

any other information concerning Mr .1 1 

After reviewing the evidence avai1ab1e to the Appea1s Board, we 

accepted Mr. 1 rs claim that he did not receive benefits from 

the ESOP. We note further that M:r. 1 1 cou1d not have retired 

from the Han1in P1an on February 1, 1988 because he had not met the 

P1an I s requirements for retiri.ng as of that date. 

Decision 

Based on the facts and circumstances of this case, the Appeals 

Board changed PBGCI.S deteati.nation by findinq that any benefit Mr. 

I I is enti t1ed to under the Ban1in P1an shou1d not be offset by 

any amounts attr1butab1e to the LCP Chemica1s and Plastics 

Corporation Employee Stock Ownership P1an. 

PBGe's Benefits AdlJdnistration and Payment Department will send 

Mr.1 1 a new detez:m.ination of the amount, form and starting date 

of any Han1in Plan benefit to which he may be entit1ed. The new 

determination wi11 incl.ude a 45-day right of appea1 for matters not 

decided in this 1etter. In the meantime, if you or Mr. I I 

require other information from PBGC I p1ease call PBGC I s Customer 

Contact Center at 1-800-400-7242. 

Sincerely, 

Linda M. Mizzi 

Member, Appeals Board 

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