Pension Benefit Guaranty Corporation pmRfii 1200 K Street. N.W., Washington. D.C. 20005-4026 

1 December 2, 2002 

Re: Appeal 

Pan American World Airways, Inc. ("Pan Am") 

Cooperative Retirement Income Pension Plan ("CRIP") 

Dear 71 

The Appeals Board has reviewed your appeal of PBGC's 

.February 5, 1999 determination that your guaranteed benefit is 

$1,334.41 per month, the same as PBGC is currently paying you. 

Your benefit is payable as a Straight Life Annuity. PBGC stated 

you were overpaid a total of $8,743.26 and concluded the $1,334.41 

benefit would be temporarily reduced. 

As explained below, we recalculated the Cost Of Living 

Allowances you were entitled to receive before CRIP terminated. 

Therefore, we are increasing your guaranteed benefit to $1,374.82 

per month. You do not owe PBGC for net overpayments. Instead, 

PBGC will pay you net underpayments, with interest from July 31, 

1991. 

Your Ap~eal 

In your March 16, 1999 letter, you stated PBGC miscalculated 

the $8,743.26 overpayment amount based on the amounts you received. 

You noted amounts PBGC paid you after withholding for taxes. 

On November 1, 1980 you retired under a pension plan (the 

"National plan")' formerly maintained by National Airlines, Inc. 

Your benefit was $1,801.32 ($1,217.99 + $583.33) per month, 

including a $583.33 supplement until age 65. However, when your 

reached age 65 in 1985, intervening Cost of Living AlTowance 

increases ("COLAS") became payable. Therefore, in 1985 the 

National Plan required reducing your $1,801.32 benefit to more than 

$1,217.99 per month. 

On CRIP's July 31, 1991 termination date, you were being paid 

$1,379.20 per month. On November 1, 1992, PBGC increased your 

benefit by $60.00 per month to $1,439.20. On March 1, 1993, PBGC 

the National Airlines Non-Contract Employees' Pension Plan 

later renamed Pan American World Airways, Inc. Non-Contract 

Employees' Pension Plan for Former Empl~yees of National Airlines, 

Inc. The National Plan merged with CRIP in 1989. 
s 0 

4 started paying the $1.334.41 per month estimated guaranteed benefit I 

c you currently receive. You received smallernet amounts because of + 

?I 

the income tax withholding. 

I 

@ Your Guaranteed Benefit 

Our actuaries independently calculated your benefit as 

$1,439.99 effective January 1, 1991, slightly more than the 

$1,439.20 per month PBGC started paying you in 1992. The $1,439.99 

benefit includes a $45.15 COLA effective January 1, 1991, and a 

$40.02 COLA increase effective January 1, 1990. 

Under the law, PBGC cannot guarantee any benefit increase 

effective less than 1 year before a plan's termination date. 

Therefore, PBGC cannot guarantee your $45.15 COLA effective 

January 1, 1991. Furthermore, PBGC guarantees only $20 of the 

$40.02 COLA effective January 1, 1991, which is only 1 full year 

before CRIP's July 31, 1991 termination date. However, PBGC fully 

guarantees the $1,374.82 ($1,439.99 - $45.15 - $40.02 + $20.00) per 

month balance of your benefit. Therefore, the Appeals Board 

increased your guaranteedbenefit to $1,374.82 per month, effective 

August 1, 1991. 

py 

As noted above, we calculated your National Plan benefit 

effective January 1, 1991 as $1,439.99 per month. However, you 

were receiving only $1,379.20 per month on CRIP's July 31, 1991 

termination date. Therefore, PBGC will pay you $425.53 { ($1,439.99 

- $1,379.20) x 7 months) with interest from July 31, 1991. 

Where to Submit Any New Evidence 

PBGC will always - even after an appeal is closed - consider 

any new. specific evidence that you present showing that you may be 

entitled to a different benefit. If you obtain any such evidence, 

PBGC will certainly review it. Please send any such information 

to: 

PBGC Authorized Plan Representative 

1175 Peachtree Street, N.E. 

100 Colony Square, Suite 500 

Atlanta, GA 30361 

You may also contact PBGC's Authorized Plan Representative at 1- 

800-400-7242 extension 2000. 

Decision 

Having applied CRIP's provisions and the law to the facts in 

your case the Appeals Board increased your guaranteed benefit to 

$1,374.82 per month, payable as a Straight Life Annuity effective 

August 1, 1991. PBGC will also pay you $425.53 in a single lump 
% 

w sum plus interest from July 31, 1991 for prior unpaid CRIP 

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I benefits. If you have any questions about your benefit payments, 

,. 

c please contact PBGC's Authorized Representative. CI 

4 

I This letter concludes your administrative remedies with * respect to PBGC's February 5, 1999 determination. You may, if you 

wish, seek court review of PBGC's determination with respect to the 

issues you have raised. We appreciate your patience during this 

careful review of your appeal. 

Sincerely, 

William D. Ellis 

Appeals Board Member