Pension Benefit Guaranty Corporation 

@ \ 5038Z-Cf 

FaGS 1200 K Street. N.W., Washington. O.C. 20005-4026 

7 SEP 2 9 2003 

Re: Appeal I Container Products Inc United 

Steelworkers Pension Plan (the 'Plan") 

The Appeals Board reviewed your appeal of PBGC's January 18, 

2001 determination of your benefit under the Plan. As explained 

below, the Board found no basis presented in your appeal for 

changing PBGC's determination. 

Benefit Determination and A~veal 

In its January 18, 2001 determination letter, PBGC 

stated:"The amount you will receive, $523.43, is smaller than 

the estimated benefit you had been receiving, $891'.83, which was 

then reduced to $491.83 on June 1, 2000, while we reviewed your 

benefit. Because we have paid you, $16,998.81 too much, we will 

reduce your future payments by $52.34 until you have repaid the 

difference, without interest. Therefore, you will start 

receiving $471.09 ($523.43 - $52.34) on April 1, 2001." In 

addition, PBGC's letter stated: ". . . you are entitled to a 

monthly payment of $151.00, starting January 01, 2002, (age 60) . After age 62, on 'January 01, 2004, your benefit will be 

$119.40." 

In your January 29, 2001 appeal (and prior correspondence), 

you contended (1) that you are entitled to the $400.00 monthly 

supplement which PBGC cut, (2) that PBGC's reduction to your 

estimated monthly benefit represents a significant personal and 

financial hardship, (3) that PBGC's policy on recoupment of 

overpayments is inequitable, (4) that you are not being treated 

in the same way as other participants with respect to the 

$400.00 supplement, (5) that if PBGC would not guarantee the 

$400.00 supplement, then liability for the supplement should 

revert to U.S. Steel (which sold the plant at which you worked 

to Container Products, Inc., *CPIW, on January 1, l984), and (6) 

that you should receive a refund Of any money recovered by PBGC 

from CPI. 
PBGC Case Number: 

Date of Plan Termination: 

16653701 

June 30, 1994 

Participant Data 

Participant Name: 

Gender : 

= 

Male 

Date of Birth: 

Date of Hire: 

- 

05/29/1959 

Date of Termination of Employment: 06/27/1986 

Actual Retirement Date: 10/01/1986 

Normal Retirement Date: 01/01/2007 

Date of plan Benefit Freeze: 02/16/1990 

Years of Credited Service (CS): 27.0800 

Average Monthly Compensation (ACOMP) $1,101.34 

Plan Supplemental Benefit (SUPP): $400 

U.S. Steel Offset (OFFSET) : $372.43 

Pre-Pension Spouse Coverage Reduction Factor (PPSC):0.9996 

Type of Retirement: Rule of 65 

Form of Annuity: Joint and 50% Survivor 

Beneficiary Data 

Beneficiary Name: 

Date of Birth: 

The PBGC's Benefit Statement was enclosed with its January 18, 

2001 benefit determination letter. In addition to the 

participant and beneficiary data reproduced above, PBGCfs 

Benefit Statement included a section entitled 'Calculation of 

PBGC Monthly Benefit." The Appeals Board notes that you did not 

dispute any of the participant data,. beneficiary data, or 

benefit calculations shown on PBGC's Benefit Statement, except 

insofar as you claimed entitlement to the $400.00 supplement. 

(1) Temporary Supplement 

The Plan did not have sufficient assets as of June 30, 1994, 

its termination date, .to provide all benefits PBGC guarantees 

under Title IV of the Employee Retirement Income Security Act 

('ERISA''). The terms of the Plan, the provisions of ERISA, and 

PBGC's regulations and policies determine your entitlement to a 
guaranteed benefit. 

The PBGC cannot guarantee a temporary benefit which, when 

combined with the lifetime benefit, exceeds the accrued monthly 

benefit payable at the normal retirement age (age 65 in your 

plan). The $400 supplement which you were receiving was to be 

paid until you reach age 62. Since it is not payable at your 

normal retirement age, it cannot be guaranteed by the PBGC. 

For your reference, this limitation on guaranteed benefits 

is set forth at 29 Code of Federal Regulations (\CFR1'), Subpart 

B--Limitations on Guaranteed Benefits, 4022.21 (a) (I), which 

states: 

Subpart 8-Limitations on Guaranteed Benefits 

9 4022.21 Limitations; in general 

(a)(]) Subject toparagraphs (b), (c) and (d) ofthis section, thePBGC will not guarantee that 

part of an installment payment that exceeds the dollar amount payable as a straight life 

annuity commencing at normal retirement age, or thereafter, to which apdcipant would 

have been entitled under the provisions of the plan in effect on the termination date, on the 

basis of his credited service to such date. If the plan does not provide astraight life annuity 

either as its normal formofretirement benefit or= an option to thenormal fonn, the PBGC 

will forpurposes of this paragraph wnven the plan's normal fonn benefit to a straight life 

annuity of equal actua&d value as determined by the PBGC. 

(2) Hardship 

Although the Appeals Board is sympathetic to your situation, 

the Board does not have the authority to consider hardship as a 

basis for changing a benefit determination. 

(3) Recoupment 

The Appeals Board does not have the authority to change 

PBGC's policy on recoupment of overpayments. 

(4) Equal Treatment of Other Participants 

The Board has no specific evidence - either provided by you 

or arising out of our own review of this case - that PBGC has 

issued a formal determination to any participant similarlysituated to yourself stating that he or she is entitled to 

receive the $400.00 temporary supplement. Please note (1) that 

there may be other Plan participants in this Plan, who, like 
yourself, received temporary supplemental benefits after Plan 

termination on an estimated basis, (2) there may be other 

participants who received their temporary supplements through 

age 62, but to Plan termination, and (3) there may be 

disabled participants who are receiving the $400.00 temporary 

supplement, which would be permitted under 29 CFR Section 

4022.21 (a) (2) (ii) . 

(5) Alleged U.S. Steel Liability for the $400.00 Supplement 

According to the administrative record available to the 

Board, U.S. Steel sold five of it facilities .(including the one 

in which you worked) to CPI on January 1, 1984. PBGC's actuarial 

valuation report states that U.S. Steel purchased annuities for 

all affected participants covering their full accrued benefits 

as of January 1, 1984. Moreover, the Board notes that. you did 

not contend in your appeal that U.S. Steel failed to purchase an 

annuity in your case or that such annuity failed to cover your 

full accrued benefit as of January 1, 1984. Under the facts and 

circumstances described above, U.S. Steel acted in compliance 

with the requirements of ERISA, in effect at the time. 

(6) Refund of Money Recovered by PBGC from the Plan Sponsor 

Acting on an interim basis effective June 1, 2000, PBGC cut 

your estimated monthly benefit from $891.83 to $491.83, because 

your $400.00 temporary supplement is not guaranteed. PBGC's 

January 18, 2001 determination letter increased your $491.83 

interim benefit by a (pre-age 62) monthly benefit of $31.60 to 

arrive at a (pre-age 62) monthly benefit of $523.43 ($491.83 + 

$31.60) . This (pre-age 62) monthly benefit of $31.60 is a nonguaranteed benefit that represents the amount of money allocated 

to your pension plan under Section 4022(c) of ERISA based on 

PBGC's experience in recovering. on. its claims against plan 

sponsors. 

Decision 

Having applied the law, the provisions of the Plan and PBGC 

regulations and policies to the facts in this case, the Appeals 

Board found no basis presented in your appeal for changing PBGC's 

determination of your benefit. This is the Agency's final 

decision on this matter, and you may, if you wish, seek court 
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! I 

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2 'review of this decision. If you need other information from PBGc, 

W 

W please call PBGC'S Customer Contact Center at 1-800-400-7242. 

Harriet D. Verburg 

Chair, Appeals' Board