hV Pension Benefit Guaranty Corporation 

1200 K Street, N.W., Washington, D.C. 20005-4026 PBGC ,~C.~OV 

Mne Mu* ,.".,ow 

JAN .2 8 2005 

Re: 1 Case 197194, Jacobson Stores, Inc. 

(JSI) Pension Plan (the Plan)) 

The Appeals Board reviewed your appeal of PBGC's November 5, 

2004 determination of your benefit from the Plan. For the reasons 

stated below, the Board granted your appeal by finding that you are 

entitled to a PBGC benefit of $543.56 per month payable as a 

Straight Life Annuity (SLA) starting on your Actual Retirement Date 

(ARD; August 1, 2004). 

Determination and Appeal 

PBGC determined that starting on your ARD, you were entitled 

to a regular monthly benefit of $392.57 payable as an SLA, which 

provides a benefit for your lifetime and no survivor benefit. PBGC 

included a Benefit Statement showing data that was used to 

calculate your benefit and also showing that PBGC accepted the 

monthly accrued benefit amount that JSI calculated. The letter 

noted that $392.57 is less than the $543.56 estimated monthly 

benefit you are currently receiving. 

Your November 12, 2004 letter stated that you "had over 30 

years of service, qualifying me for early retirement at age 60, per 

the info enclosed supporting documents, some of which were sent to 

me after my termination date. " With the letter, you enclosed a 

December 5, 1997 letter from JSI stating that "You can retire early 

at any time after age 55 and completion of 30 years of vesting 

service . . . " You also enclosed a document entitled "Vested 

Benefit Certification at Customary Retirement Age of 60 with Early 

Retirement Option" signed and dated October 8, 1998, which you 

apparently received from JSI after you quit working for JSI on 

August 15, 1998 at the age of 52. With your letter, you also 

enclosed a copy of a JSI estimated benefit calculation sheet 

created on November 15, 2001 with a proposed retirement date of 

August 1, 2003 as well as a copy of a 1997 Summary Plan 

Description. 

PBGC's November 30, 2004 response to your November 12, 2004 
letter stated that: 

"We have confirmed with the plan's actuary that Early Unreduced Retirement is defined by 

your plan as age 60 after attaining age 55 and completing 30 years of service. Also, to be 

eligible to receive a reduced Early Retirement Benefit you had to attain age 55 on the date of 

termination of employment (DOTE). Our records show that your date of birth is 07/06/1946 

and your date of termination of employment is 08/15/1998 which means your were age 52 

and 1 month on your DOTE. Although we concur that you had over 30 years of service with 

Jacobson Stores, you are not entitled to receive Early Retirement Benefits because you 

were not age 55 or older when your employment terminated." 

Your December 7, 2004 appeal letter stated: 

. . . If there is no other recourse or appeal available for the amount of the 

benefit, I will defer my pension until I am 60 years of age in order to receive the FULL 

amount of $603.96. 1 am sure you can find a way to reset my balance to '0' and stop my 

pension at this time. . . . " 

(Emphasis in the original.) 

Discussion 

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 pension plan, 

PBGC becomes trustee of the plan and pays pension benefits as 

defined in the plan subject to limitations and requirements set by 

Congress under ERISA. 

Records available to the Appeals Board reveal that the Plan 

terminated on September 30, 2002 and that PBGC became trustee of 

the Plan on October 1, 2002. The records also show that you quit 

working for JSI on August 15, 1998 at the age of 52 after earning 

more than 30 years of vesting service. 

Based on our review of the Plan's governing documents and 

ERISA requirements, the Appeals Board decided that Plan 

participants who earned at least 30 years of vesting service and 

quit working for JSI before attainment of age 55 are entitled to an 

unreduced deferred vested benefit starting at age 60 or a reduced 

benefit starting between ages 55 and 60, with the reductions 

applied from age 60 rather than from age 65. 

Decision 

Having applied Plan provisions and the law to the facts in 

this case, the Appeals Board granted your appeal by finding that 

you are entitled to a PBGC benefit of $543.56 per month payable as 

an SLA starting on August 1, 2004. 
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