A Pension Benem Guaranty Corporation 1200 K Street, N.W., Washington; D.C. 20005-4026 

JUL 2 2.2004 

Re: Case #: 188188; Consolidated Pension Plan for Acme 

Salaried and Hourly Employees 

The Appeals Board reviewed your appeal of PBGC's October 23,2003 determination that 

you are not entitled to a disability benefit under the Acme Plan. For the reasons explained below, 

we found no basis for changing this determination. The Board funher found, however, that you 

are owed backpayments of youfearly deferred vested pension f& the months of June through 

December of 2002. PBGC will pay these to you in a single lump sum with interest. 

PBGC's ~eierminations and Your Ao~eal 

PBGC's first .determination, dated September 8, 2003, said that you are entitled to a 

benefit of $346.81 per month as a lifetime annuity, which is the same amount you are currently 

receiving. Your September 19,2003 letter to the Appeals Board said that you retired on disability 

and asked that PBGC recalculate your benefit under the Plan's disability provisions. To support 

your appeal, you included a copy of a Settlement GnrractLwnp Swn Perition and Order from the 

Illinois Industrial Commission relating to your Workers' Compensation claim against Acme Steel 

for a work-related irijury you incurred on June 23, 1998. The Board asked PBGC's Insurance 

Operations Department (IOD), the organization responsible for determining and paying benefits, 

to respond to your request. 

On October 23, 2003, 10D issued a new determination that said you are not entitled to a 

disability pension because you did not meet the Plan's disability eIigibility requirement of at least 

15 years of continuous service. IOD said that (1) you were hired by'~cme on April 16, 1987, 

(2) your employment with Acme ended September 22, 2000 and (3) you had 13.434 years of 

continuous service. The letter also explained how your $346.81 per month benefit was calculated 

under the ~h's "Early Deferred vested" retirement rules. 
You appealed PBGC's second determination on November 6, 2003, again asking that 

PBGC dhange your benefit from a deferred vested pension to a disability pension. You sai4 that 

.you were never able to return to work after your June 23, -1998.injury, which left you with a 

46 percent disability of your left leg. You also noted that you received Workers' Compensation. 

for 6 months after your injury followed by 52 weeks of short-term disability payments and that 

you are currently receiving Social Security disability payments. 

When the Acme Plan terminated, effective June 1,2002, it did not have sufficient assets 

to provide aU 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 regulations 

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

to be entitled to a guaranteed benefit, a participant must satisfy the conditions of the plan 

neceisary to establish the right to receive the benefit on or before the earlier of tbe date the 

participant's employment ended or the plan's termination date (see 29 Code of Federal Regulations 

(CFR) $$4022.3, .4(a)(3)). 

Under section 2.5 of the Acme Plan for hourly employees at the Riverdale plant (copy 

, enclosed), a participant must have at leak 15 years of continuous service and be "permanently 

incapacitated" to be eligible for the Plan's Permanent Incapacity (disability) retirement. The files . 

PBGC's auditors obtained from the prior Plan Administrator show that you had only. 13.434 years 

of continuous service between your hire date of April 16.1987 and your employment termination 

date of September 22, 2000. (You did not dispute these dates in your appeal.) . 

The files also include information showing you were awarded Social Security disability 

benefits, retroactive to December, 1998. However, youare not eligible for the plan's Permanent 

lncapacity Retirement because you did not also have at least 15 years of continuous service. 

Wile we are sympathetic to your situation, the Appeals Boafd has no authority to change the 

terms of the Plan or PBGC policy. 

PBGC Benefit Pavments 

As discussed, above, PBGC became responsible for paying benefits guaranteed, under 

ERISA as of June 1. 2002. the date the Acme Plan terminited. The records available to the 

Appeals Board show that (I) PBGC's paying agent (State Street Bank) began paying your $346.81 

monthly benefit on January 1,2003, and (2) neither the former Plan Administrator's paying agent 

nor State Street Bank paid you for June through December of 2002. The Board found that you 

are entitled to those backpayments with interest. 
Decision 

Having applied the law and the Plan's provisions to the facts in this case, the Appeals 

Board found that you are not entitled to a permanent incapacity .retirement under the Acme Plan. 

This is the Agency's final decision concerning your eligibility for a permanent intapacity pension 

and you may, if you wish, seek court review. 

We will forward a copy of this letter to our Insurance Operations Department. They will 

calculate the backpayments PBGC owes you for your early deferred vested pension and pay that 

amount in a single lump sum with interest. If you have questions, please call PBGC's Customei 

Contact Center at 1-800-400-7242 and ask for the JOD analyst assigned to your Plan. 

. Sincerely, 

Linda M. Mii 

Member, Appeals Board 

Enclosure