4% Pension Benefit Guaranty Corporation PBGC 1200 K Street. N.w., Washington, D.C. 200054026 

m.,m.,w.-t, WWW.~~~C.~OV 

1 August 10, 2005 

I I 

Re: Case Number 196153 

McCook Metals, LLC Pension Plan for Hourly Employees 

(the "McCook Plan") 

Dear 71 

The Appeals Board has reviewed your appeal of PBGC's March 15, 

2005 (remailed May 4, 2005) determination of your guaranteed McCook 

Plan benefit. We are increasing the portion of your guaranteed 

benefit beginning March 1, 2014, from $79.62 to $98.86 per month. 

Discussion 

PBGC determined your guaranteed benefit is $642.57 per month 

before age 62, and $79.62 per month beginning March 1, 2014. Your 

McCook Plan benefit is reduced at age 62: (i) when a partiallyguaranteed temporary supplement ends, and (ii) for a Reynolds plan1 

benefit payable beginning at age 62. Your guaranteed benefit is a 

Joint and 50% Survivor Pop-up Annuity. Your guaranteed benefit 

will be temporarily reduced by less than 10% until your 

overpayments have been repaid. 

In your May 12, 2005 appeal: 

You questioned why PBGC continued overpaying you for 9 months. 

To prevent economic hardship, PBGC pays estimated benefits 

while PBGC obtains and audits the records needed to calculate 

an accurate benefit. Until PBGC calculated your estimated 

benefit, PBGC continued paying you the $1,417.39 benefit the 

McCook Plan administrators had calculated. 

Your PBGC benefits are lower than your McCook Plan benefit 

because of the legal limits explained in PBGC's Benefit 

Statement. We regret the inconvenience caused by PBGC taking 

9 months to calculate your $642.57 guaranteed benefit. 

You stated reducing your benefit is neither fair nor legal. 

We found PBGC used too large of a reduction at age 62 for your 

Reynolds Plan benefit. The McCook Plan document requires 

reducing for the Reynolds Plan benefit you had earned on 

1 Reynolds Metals Company Pension Plan for Hourly Employees. 

See page 3 for Reynolds Plan points of contact. 
June 16, 1998. Reynolds administrators confirmed your accrued 

benefit under the Reynolds Plan is $897.50~ instead of the 

$931. 2s3 amount PBGC used. Therefore, we recalculated your 

guaranteed McCook Plan benefit beginning at age 62 as $98 .864 

per month. 

PBGC must apply limitations given by law when guaranteeing 

your McCook Plan benefit. Your total Reynolds-McCook benefit 

is : (a) 45%5-guaranteed and payable only under the McCook Plan 

until age 62, and (b) 94%-provided { ($98.86 + $852.63=) s 

$1,017.39) together by PBGC and the Reynolds Plan thereafter. 

The law and PBGC's regulation require PBGC to seek repayment 

of your overpayments. To minimize economic hardship : (i) 

PBGC is not charging - - interest on your overpayments, and (ii) 

PBGC is limiting your temporary reduction-for recoupment to 

9.44%. 8 

You questioned how PBGC calculated your overpayment total 

PBGC's calculations are shown in Enclosure 1 to this letter. 

You were overpaid $6,973.38 { ($1,417.39 - $642.57) x 9 months 

June 2002 through February 2003). 

You stated a PBGC representative advised you on the telephone 

that filing an appeal would not help you. 

We regret any such advice you were given. We will consider 

any timely written appeal specifically explaining why a PBGC 

determination may be wrong. 

$35.90 pension factor x 25 years Reynolds Plan service 

$37.25 pension factor x 25 years Reynolds Plan service 

4 ($37.25 pension factor x 28.75 years total service - $897.50 

Reynolds Plan benefit) x .95 annuity form adjustment x 60% "phasein" guaranteed benefit limit 

$897.50 x .95, assuming you receive your Reynolds Plan 

benefit as a Joint and 50% Survivor Pop-up annuity starting at age 

6 2 

' 29 Code of Federal Regulations "CFR" section 4022.81 and 

54022.82 (a) (2) (i) 

"$642.57 - $581.78) 4 $642.57. 
Whom to Contact 

If you have any questions about your Reynolds Plan benefit, 

you may call 1-888-ALCOA123 or the Alcoa Retirement Service Center 

at 1-800-231-8151. Representatives at the Alcoa Retirement Service 

Center are available, Monday through Friday, from 8:00 a.m. to 5 :00 

p.m. Eastern Standard Time, excluding holidays. You may also write 

to: 

Alcoa Retirement Service Center 

P.O. Box 4844 

Chesapeake, VA 23327-4844. 

If you have any questions about your McCook Plan benefit, please 

contact PBGC's Authorized Plan Representative at 1-800-400-7242. 

Decision 

Having applied the law and PBGC's regulations to the facts in 

your case, we are denying your appeal. Your guaranteed benefit 

must be temporarily reduced to repay your overpayments. However, 

we are increasing the portion of your guaranteed benefit beginning 

March 1, 2014, from $79.62 to $98.86 per month. 

This letter concludes your administrative remedies with 

respect to PBGC's May 4, 2005 determination. You may, if you wish, 

seek court review of PBGC's determination with respect to the 

issues you raised. Thank you for your patience while we carefully 

reviewed your appeal. 

Sincerely, 

William D. Ellis 

Appeals Board Member 

Enclosures: 

(1) PBGC recoupment calculation summary dated March 11, 2005 

(2) Copy of the Benefit Statement PBGC enclosed with its 

determination of your benefit (4 pages)