.Re: Case 187150, Ja-Ce Company, . Inc. 

(Ja-Ce) Pension Plan (the Plan) 

The Appeals Board reviewed your . appeal of PBGC's 

November 1, 2002 determination that you are not entitled to a 

PBGC benefit. For the reasons stated below, the Appeals Board 

-granted your - appeal by finding that you are entitled to a 

benefit from PBGC. 

PBGC's Determinations. Your Correspondence and Your Appeal 

PBGC's September 30, 2002 determination said that you were 

not entitled to a PBGC benefit because when you terminated 

employment with Ja-Ce, the Plan required five years o'f .service 

for a vested pension benefit and the Plan records indicated that . 

you had less than five years of service. 

PBGC's November 1, 2002 corrected deterniination stated: 

We have found an error in our original determination letter regarding your pension 

benefits. In that letter dated September 30. 2002, we informed you that you are not 

entitled to a PBGC benefit because your plan required 5 years of service in order to 

qualify for a vested pension benefit and our records indicate that you had less than 5 

years. We have corrected this determination as follows: 

When you terminated employment, your plan required 10 years of service in order to 

qualify for a vested pension benefit. Our records indicate you only had 6 years of 

service." 

Your November 3, 2002 letter included a copy of a July 19, 

1988 letter you said was sent to you by Ja-Ce, stating you would 

become 100% vested in your accrued benefit as of September 30, 

1988. 
PBGC's May 2, 2003 response to your November letter said: 

"~ltho;~h, atthe time you terminated employment the vesting requirement was 10 years 

of vesting service, according to your pension plan, 'As of September 30, 1988, all 

Participants' Acaued Benefits are 100% vested.' This indicates that you were 100% 

vested. However, according to a letter sent to you on August 2,1992 from Jacqueline H. 

Goedesky, Office Administrator at Ja-Ce she states, 'The current value of your pension 

with Ja-Ce is $1,f60.31, therefore, JbCe Company has chosen to pay off your benefit.' 

PBGC believes that you have been paid the value of your benefit and that you are due 

no further pension from PBGC on behalf of the Ja-Ce Company. Inc. Retirement Plan." 

Your May 13,..2003 appeal letter said: 

" Although your letter of May 2. 2003 does indeed acknowledge my original 

contention that I am indeed eligible for the Ja-Ce pension, I have never received any 

payment in any form. Reference is also'made to a letter purportedly sent to me in 

August of 1992 informing me of a pension payout from Ja-Ce. No such correspondence 

was ever received, if ever sent at all. 

In a telephone conversation with a member of your office on May 7. 2003, 1 

enquired as to what proof could be offered that such a payment was ever made. Your 

representative stated that the PBGC had simply 'taken the word' of the Ja-Ce actuaries. 

I am certain that no proof could be offered, since the payment was never made." 

Discussion 

1. Your Vested Status 

Records available to the Appeals Board show that your 

employment with Ja-Ce ended on September 15, 1987. As indicated 

in PBGC's .November 1, 2002 corrected determination letter, the 

Plan's governing document .that was in effect when .your 

employment with Ja-Ce ended required ten years of service in 

order for your benefit to be vested. A restatement of the 

Plan's governing document -that became generally effective on 

July 1. 1989 provided for vesting after five years of service 

except for the accrued benefit as of September 30, 1988, which 

was fully vested immediately. 

The July 19, 1988 letter that you said you received from 

Ja-Ce states that you would become vested as of September 30, 

1988. Because such a letter might have been sent to you in 

error, the Appeals Board reviewed the PBGC files of participants 

similarly situated to you and found another participant with 

fewer than ten years of service whose employment with Ja-Ce 
*; 

!? ended before September 30, 1988. The fact that Ja-Ce calculated 

and paid a lump-sum with respect .to that participant coupled 

n with Ja-Cels July 19, 1988 letter provide sufficient evidence 

u that the former Plan administrator amended the Plan to provide 

h 100% vesting to a group of participants as of September 30, 1988 

even though they terminated employment before that date. 

& a result, the Appeals Board decided to agree withPBGCas 

May 2, 2003 letter and find that you are 100% vested in your 

accrued benefit. 

2. Whether You Received a Lump Sum from Ja-Ce 

As noted. in PBGC's May 2, 2003 letter, documents in PBGC's 

files show that Ja-Ce calculated the lump-sum value of your 

vested benefit in 1992 and prepared a letter to be sent to you, 

stating that ~a-Ce had decided to pay you the value of your 

vested benefit in the form of a one-time lump-sum benefit. With 

that letter was a form with places for your signature and the 

signature of Ja-Ce's president/plan administrator. PBGC1s files 

do not include any signed copies of that form. 

PBGC files also include a copy of a June 14, 1995 letter 

addi.essed to you by Ja-Ce's pre~ident/~lan administrator stating 

that Ja-Ce was sending you a copy of "a ~umrnary' Plan Description 

of Ja-Ce Company's Pension Plan Document for your perusal." 

. The Appeals Board decided'it is unlikely that Ja-Ce would 

send you a copy of the Plan's Summary Plan Description in 1995 

if Ja-Ce had already paid you the full value of your vested 

benefit in 1992. As a result, the Board found that although 

Ja-Ce intended to pay you the lump-sum value of your benefit in 

1992, for whatever reason, Ja-Ce did not pay you the lump-sum 

value of your benefit in 1992. Because PBGC has no record that 

Ja-Ce paid you the lump-sum value of your benefit at any other 

time, the Board concluded that you are entitled to a PBGC 

benefit. 

Decision 

Having applied provisions of the Plan to the .facts in your 

case,, the Appeals Board decided to grant your appeal by finding 

that you are 100% vested in your accrued benefit under the Plan, 

you did not receive any payment for your benefit from Ja-Ce, and 

you are, therefore, entitled to a PBGC benefit under the Plan. 
?? 8 Upon receipt of this appeal decision, PBGCTs Insurance 

ID operations Department will send you a new determination 

M regarding the amount of your vested benefit and related matters. 

;I The new determination will include a 45-day right of appeal. 

Meanwhile, if you need other information about your benefit, 

please call the Customer Contact Center at 1-800-400-7242. . 

Sincerely, 

Michel Louis, 

Appeals Board Member