Pension Benefit Guaranty Corporation P6nc 1200 K Street, N.W., Washington, D.C. 20005-4026 ".-nww~.x. 

JAN 2 8 2004 

Re: Appeal I 164964, Abrasive Industries Inc. 

Pension Plan (the Plan) 

Dear 

The Appeals Board reviewed the appeal filed by your late 

husband, of PBGC4s September 13, 2002 determination 

of your husband's PBGC benefit. For the reasons stated below, we 

changed PBGCts determination by finding that was 

entitled to a disability benefit under the Plan. 

The Insurance Operations Department (Ton), the PBGC office 

responsible for issuing benefit determinations, will send you a 

corrected determination letter with a new 45-day right to appeal. 

Determination and Appeal 

PBGC determined that your husband was entitled to a monthly 

early commencement benefit of $95.23, payable as a Joint & 100% 

Survivor Annuity (J&lOO%SA), which provided your husband a benefit 

for his lifetime and you with the same monthly amount for your 

lifetime after his death. PRGC noted that that amount is less than 

the $182.59 amount he was receiving at the time of the 

determination letter. 

October 13, 2002 appeal stated that he had been 

forced to retire early because of medical disabilities. His appeal 

pointed out that Coopers & I~ybrand had calculated his disability 

benefit at $182.59 for the J&100%SA option, which he chose instead 

of the Joint and 50% Survivor Annuity option. His appeal also 

asked why his benefit was reviewed after seven years. 

Discussion 

Your husband provided Social Security Administration [SSA) 

documentation that SSA found him disabled as of May 25, 1990, and 

that 

told an 

SSA 

appeals 

disability payments were 

anaylyst that there was 

continuing 

a period 

in 2002. 

when 

71 

disabjljty 

payments were suspended because he had a bypass operation that 
enabled him to resume work in 1992. He said that his heart 

problems recurred in 1993, and he was unable to continue working 

from that time. This history is consistent with company records 

that show he worked 2,073 hours in 1989, 1,081 in 1990, 176 in 1991 

and 3,912 in 1992. 

You and 1 supplemented his appeal with copies of 

"attending physician" statements, one of which appears to be have 

been signed by it appears that Dr. 

was I attending physician when he became permanently 

disabled in 1993. Dr. 6 July 15, 1993 report states that a 

Thallium stress test was positive, but estimated that your husband 

would be able to return to work on September 1, 1993. After an 

August 20, 1993 visit. however, Dr. I submitted a 

supplementary statement in which he changed his appraisal to "NEVER - THE PATIENT 1s TOTALLY AND PERMANENTLY DISABLED." In a July 11, 

1994 report, Dr. listed the date of your husband's first 

visit during his then current absence from work, June 28, 1993, as 

the starting date of total disability. For the ending date, he 

wrote "NEVER. " 

The Plan defines "Total and Permanent Disabilityw as "a 

physical or mental condition which, in the judgment of the Company, 

based on medical reports and other evidence satisfactory to the 

Company, including evidence that the Participant is eligible for 

Social Security Disability benefits, presumably permanently 

prevents an Employee erforming any substantial gainful 

activity . . ." While F-1 did not apply for a di.sability 

retirement benefit until 1996, Dr.beports establish that 

he was in fact disabl.ed before the Plan terminated on April 8, 

1994. The Plan's former sponsor was administeri-ng the Plan at the 

application for disability retirement was 

:~~~ov~nla former sponsor was satisfied, and the record 

shows that its judgment was supported by medical and SSA evidence. 

Decision 

Having applied Plan provisions, the law, and PRGC's rules to 

the facts in this case, the Appeals Board changed PRGC's 

determination by finding that your husband was entitled to a 

di sabi.1 i ty benefit under the Plan. 

When IOD receives a copy of this decision, they will 

recalculate your late husband's benefit; and your resultant survivor 

benefit based on the Plan's disability ret.jrement provjsjons 

instead of its early commencement provisions. IOD will then send 

you a corrected determination letter with a new 45-day right to 

appeal. 
We regret the delay in resolving 1 appeal. and 

appreciate your patience while we completed our review. If you 

have other questions about your benefit, please call the Customer 

Contact Center at 1-800-400-7274. 

Sincerely, 

Michel Louis 

Acting Chair, Appeals Board