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

Re: Case 194623, Pension Plan for 

Bargaining Unit Employees of Erie Forge & Steel, Inc. 

(the Plan) 

The Appeals Board reviewed your appeal of PBGC's September 11, 

2002 determination that you are not entitled to a disability 

retirement benefit from the Plan. For the reasons stated below, 

the Board found that you are entitled to a disability retirement 

benefit from the Plan. 

Determination and Ap~eal 

PBGC's determination letter said that "(o)ne of the 

requirements for a disability pension is that you become disabled 

prior to the date the plan terminated, December 10, 2001. 

According to Social Security, you did not become disabled until 

January 14, 2002, which is after the plan terminated." 

Your appeal states that your heart damage began well before 

the December 10 - January 14 period, that in April of 2000, you had 

open heart surgery to replace the aortic valve, and that you "knew 

something was not right with my heart but I kept my mouth shut 

because, at that time, my wife was battling lung cancer and I could 

not risk my job and health insurance." 

Backqround 

PBGC provides pension insurance in accordance with the 

Employee Retirement Income Security Act of 1974, as amended 

(ERISA). If a plan sponsor is unable to support its pegion plan, 

PBGC becomes trustee of the plan and pays pension benefits as 

defined in the plan subject to limitations set by Congress under 

ERISA . 

PBGC's records state that on December 22, 2000, Erie Forge & 
Steel Inc. (Erie Forge) filed for protection under Chapter 11 of 

the Bankruptcy Code, that on November 15, 2001, Park Corporation 

agreed to purchase substantially all the assets of Erie Forge but 

did not assume any of the liabilities associated with the Plan, and 

that the Order of the Bankruptcy Court approving the asset sale 

became final on December 10, 2001. PBGC records also show that 

PBGC became the Plan's trustee on March 22, 2002 and the Plan's 

termination date is December 10, 2001. 

ERISA section 4022 (a) provides that, subject to certain 

limitations, the PBGC shall guarantee the payment of all 

nonforfeitable benefits under a covered plan that terminates. 

ERISA § 4001 (a) (8) defines a "nonforfeitable benefit" as ". . . a 

benefit for which a participant has satisfied the conditions for 

entitlement under the plan or the requirements of [ERISA] .It See 

also 29 Code of Federal Regulations (CFR) § 4001.2 (definition of 

"nonforfeitable benefit") . PBGC regulations provide that a 

guaranteed benefit, among other conditions, must be nonforfeitable 

on the date a participant's employment ends, or if earlier, on the 

plan's termination date. 

Section 5.4 of the Plan's governing document in effect as of 

the Plan's termination date states that if "a Participant who has 

completed at least ten (10) Years of Service becomes Totally and 

Permanently Disabled pursuant to Section 1.52 prior to retirement 

or separation from service, and such condition continues for a 

period of six (6) consecutive months and by reason thereof such 

Participant's status as an Employee ceases, then said disabled 

Participant shall be entitled to receive $300.00 per month until 

the Participant attains age 65 and thereafter a Normal Retirement 

Benefit pursuant to Section 5.1 based on Years of Service accrued 

to the date the disability retirement commenced." 

Plan section 1.52 defines "Total and Permanent Disability" as 

"a physical or mental condition of a Participant resulting from 

bodily injury, disease, or mental disorder which renders him 

incapable of continuing his usual and customary employment withthe 

Employer." 

Documents available to the Appeals Board indicate that 

although you were placed on lay-off on November 14, 2001, you were 

still considered an active employee when the Plan terminated on 

December 10, 2001. 

Discussion 

Because the SSA set your date of disability as January 14, 

2002, which was after the Plan's termination date, the Appeals 

Board asked you for the documentation of your disability that the 
SSA reviewed. In response to our request, you sent us the results 

of the physical examinations you underwent on January 14, 2002. 

Based on the records you submitted, it appears that the 

examinations occurred at Priority Care, a clinic in Erie, 

Pennsylvania that specializes in ~ccu~ational Medicine. Priority 

Care's January 14, 2002 Audiology Report indicates that the test 

was a "pre-employment" test taken at the request of WHEMCO, which 

is owned by Park Corporation. On your Priority Care History and 

Physical Form, you indicated your Employer's name as Erie Forge, 

which is consistent with the Audiology Report because the new Erie 

Forge is a division of WHEMCO. As a result, the Appeals Board 

concluded that the SSA probably chose January 14, 2002 as your 

disability date because the new Erie Forge declined to hire you for 

a position similar to the one you held with the old Erie Forge 

based on the results of your January 14, 2002 medical tests. 

The written results of the January 14, 2002 tests confirm that 

you have had aortic valve replaceme - nuary 14, 

2002 test, the examining physician, concluded 

that due to a "mixture of multiple medica problems including 

hypertension, an enlarged heart, a pacemaker, obesity, etc.," he 

"would not recommend lifting over 20 pounds on an occasional basis" 

and, therefore, recommended employment "with accommodation." 

Given the nature of the medical problems mentioned by 

in his report, the Appeals Board decided that it is 

likely that these same medical conditions were present on 

December 10, 2001 when the Plan terminated. Given that your former 

job as a lay-out plater involved heavy lifting, the Board concluded 

that you had physical and/or mental conditions resulting from 

bodily injury, disease, or mental disorder which rendered you 

incapable of continuing your usual and customary employment with 

the old Erie Steel before the Plan terminated. 

Decision 

Having applied Plan provisions, the law and PBGC rules to the 

facts in this case, the Appeals Board decided that you met the 

eligibility conditions for a disability retirement benefit under 

the Plan before the Plan terminated. 

When the Insurance Operation Department (IOD) , the PBGC 

department responsible for issuing benefit determinations and 

paying benefits, receives a copy of this decision, IOD will send 

you a new determination letter regarding the amount of your 

disability retirement benefit and its starting date. The new 

determination letter will include a new 45-day right to appeal. In 

the meantime, if you need more information about your benefit, . -. 
please call the Customer Contact Center at 1-800-400-7242. 

Sincerely, 

Michel Louis 

Appeals Board Member