fiW Pension Benefit Guaranty Corporation 

1200 K Street. N.W., Washington. D C. 20005-4026 ", -9-, w<...c. 

APR 3 0 2004 

Re: Case 194025, Trans World Airlines, lnc:. 

(1'WA) KeLj rernent I'l an for Xnipl oyc!es (the 1'1 an) 

The Appeals IIoartl rcviewctf your appeal of WGC's kcenher 22, 

2003 clctermination of your I'lar~ tmwijt. 14'or the reasons stated 

be1 ow, we must deny your appc-a1 . 

I'IGC doLcrnlj ncd that you are c11t.j t l ed Lo a rnont.hl y hcncf i t of 

$39.1.97 payable as a Slrajght 1.ife Annuity, which provides 3 

bcnef j t f or your I i f c!Lirnc? ant1 no sul-vivol- hcmef i L . klIiGC! not.eci that. 

Lhis anlount. is the samc as you Iiave hett~~ receiving. 1Icc:ausr you 

st art ed 1-ecrivlny your- 1'7 all i-~t~~c,f i t Lc!fc>~-c. t 11c. l'1n11 tc~rminrit.cd and 

bcc:aut:c !%GC' i .c: payi ng yuu YOLIT f ul 1 I I I i t , F'iic;(;C di tl not 

jncluclcs a Henel j t. St.iiL(.mc.~~L w~ tll it o d~Lc:rlr~iriaLjon IeLLer. 

111 your March 2, 2004 appeal lelLer, you stated that your 

speci f ic reasons why you be1 i eve PI3GC:'s: clc!t.errninatjon i s incorrect. 

are as f 01 lows: 

"The Pension Benefit Guaranty Corporation did not uphold its mandate by Congress to 

guarantee my pension and did not put forth even a good faith effort to see that it was 

properly funded by the Carl IcahnlPichin Corporation. enclosure (3). Could you have not at 

least said 'NO'to this Corporate Raider just once! 

Knowing the prior pension raiding history of Cart lcahn you should have tried lo at least save 

the pensions of those who had worked so long for TWA. Since nolhing was done then when 

you had the opportunity, your time tias now conle to step up to the plate and fulfill the 

obligation of the word y~uw_n!ec in your name by including years of 1904. 95. and 96 in 

recalculation of my Guaranteed Pen_s~on, enclosure (4). 

I worked over 31 years for Trans World Airlines and deserve a decent pension but the 

F'RGC took the easy way out and offered no rebuttal to the corporate lawyers of Carl 

IcahnlF'ichin Corporation. Why did the PEIGC roll over for the corporate lawyers of Carl 

Icahn, you are in the business of gvaranteeing/protecling my TWA pension. When I think 

of all the bullelins/lfyers I have received from the FT3GC over the last twenty years and il was 

nothing but a window dressing game which I and the American public have bought hook line 

and sinker! The PBGC is the last defense against a pension fund raider like Cad lcahn and 

you stood by and did nolhing. $397.97 is not a fair pension after 31 years of service with 
Trans World Airlines 

lo make rnaltcrs worse. Ihc collusion hetwecn PIKX and Carl lcahn was one of the best 

kcpt secrots in 1 WA. cnclostrrc (5). 1 hc linrc has wvr c:orr~e lo make amends for whal Ihc 

f'fiGC had not done in thc past. 1 he ycars I worked for 1 WA in 1994. 95 and 96 shoultl be 

calculated into my final monthly pension. Conimon decency would expecl no less. Sour 

grapes. I don't think so. I only wish I had been in that mecling lo put forth the rcsponsibilitics 

a company has to ils TWA employees pension plan. A plan that now puts me below poverty 

level and no where near what I would be drawing if I had workcd 31 years with the Cou.isvjlle 

In an associated matter I have oflen wondered if tlw supplcnienlal IAM "W Retirement Plan 

aniounl was included in my monthly pension check or was it lo be paid separately? The last 

information I had was that those funds were to be turned over to TWA and included into one 

monthly payment, enclosure (6)." 

I . PBGC' s Insurance Program 

I'RGC: provi dcs pensi on i nsurance according to the Kmpl oyee 

JlcLj rerncnt Inconlo Securi ty A~L oi1971, as amended (rmISA) . 3 f a 

plan sponsor is unabl c 1.0 rzupporl i ts qua1 i f i c!d clef i r~cxl. hc!nef i t 

pe~r I an, IWGC bccc,~rws t.1-ust rw of L hc: pl an and pays pension 

benef i 1.s as clef ined .in the r11an fiubj~.ct. to I jmi t-at jons set by 

Conqrrr:!.; undcr IMI SA. 

Hccc>rds avail abl c to the Appeals lroarci I-cvcal that the Plan 

tcrlnlnat.cd on January I, 2001 and t.hat. >WGC bc:c:irme trustcx of t.he 

1'1 art on i!anttary 2, 2001 . 

Aftcr the Plan terminated on 3anua1-y I, 2001, PFlGC pcrsonnel 

cronductcd an audit of the procedures 1'WA used in adnlinisLering thc 

Plan and calculaLincj part.icipanLsB Plan-dcfined benefits. Aftcr 

ca1culat.ing bcnefi ts for a sanpl jng of participants and comparing 

the I-csul ts with 'I'WA's calculations, I'1K;C audj tors concluded that 

the bcnrfit nnmunts in 1'WA's database we]-c I-eliak~le. So, for most 

reLi rces, PRGC accepted TWA's calcula~ion:;. And j n your ca.se, your 

PHGC hcncfjt is the same as thc benefit iWA was paying you when Lhu 

1'1 an t ermi na Lcd . 

P1ci:se note that i$KI SA docs not nut hori ze PHGC: to pay bcncf i Ls 

larger than the henciits provided unclcr- thc. terms of a plan that 

t.errnjnatc?s. 

2. The 1993 Benefit Freeze and the Comprehensive Settlement 

Agreement 

Ily way of background, Carl I cahn was the f 01-rncr cant 1-03 I j ncj 
~:harc.hc~Icler of'I'WA. 'J'WA f ilcd a I~ankrupccy pet i t.ion jn 1992 in the 

I\a~?k)-uptcy llivi sion of the Uni ted Stat.rs Ili strjct Court. for thc: 

111 strict oi ilclaware. Onc of Ltlc i ssuer: jnvolved jn t hc: kmnkruptcy 

was Che status of 1'WA's untlcl-fundc:d pensioll ]~lans, and ~hc, c.xt.cnt 

of Carl Icahn's Iiat.)jljty, jf any, in the cvont Llw plans 

terminated. Mr. Icahis conditioned hi s wi I I inqness to proviclc TWA 

wi th a $200 million loan (which was necessary for TWA to survive 

and cmergc from bankrupl.cy) upon bencf i t. 1 reezc amendment s for a1 I 

of t:he 'J'WA defined hencf i t. plans: and upon some provision LhaL f jxed 

thr! arnounL of 1 i abi I i Ly that. hr n~j ght i nc:ur towal-d..: Lhcr pcmsj on 

plans . 'l'hrc~ughout. these pi-oc:c-edi rqs, the Iritcrnational Assc~ci at. ion 

of Mac:hi r~j sts arid Aerospace Workt?+s (I AM) rep]-esvnt cd Lhc i nt.rre~:Lc: 

of active passenger scrvicc ernpl oyees I i kc. you. 

On January 5, 1993, T'WA, lAM (and other unions that. 

rcprc!sentcd l'WA cmployccs), and PC sjgnc.d a Comprehensive 

Sc\Lt.I ernent Acjreenlcnt (CSA) uirder whic:h: (3 ) Carl I cahn loaned TWA 

$200 mi 11 ion; (2) an I cahn- owned concel-n c:al It4 Pi chin C:orp. took 

over sponsorship of the 1'WA pcnsjon pl all::, rind agreccl to hecomc: 

rc~sponsi kde for any mini mum funding costs. of the plans t.11nt were 

not c:ovcrcd by a $300 million pnymcnt guarm~Lcccl by TWA; (3) the 

1.17 anst we]-c amcncfc.d to f rcezc t.hc accrual of addi t.i onal bcncf i ts; 

(4 ) j t was qrec:d that. t-he plan:: wc)ul c1 t emii nalt: i f c:ert.ai 11 events 

:c-cl after 1993 ; asid (5 if t I plans worc: the-roaf ter 

1 r~-~rii lmtcd t~y I'IGC:, i L wan agrccd Lhat 1c.aIm wc~ulcl pay $240 m.i 13 ion 

dc~lli\~-s. l'hc I<ankruptc!y Coul-L appl-cwrcl the CSA, and it was; 1at.e~ 

i rlcc~rpo~-a ted in a 1'3 an of Kcorqani m1.i on apjrovcd by the F<ankrupLcy 

Cc~urt. Weit.her ]AM nor any other yrarly took an appeal from that. 

ckcj sion, whi ch 1-~ccamc! final and hi ndj nq . 

Alt.hough II3GC might otherwise have tcrminatcd the TWA plans in 

1993 due to their undcrfundcd status, WGC decided to sign the C:SA. 

Hecause FHGC did not object to the agreements between TWA and its 

cmployccs~ unions Lo freeze benefit aacr~mls and csniinue Lhc \ 

plan::, 'J'WA was able t.o emerge from bankrupt.cy as a going concern 

with TWA's employees still in their jobs. 

After aln~ost eight. more years of pension funding, t.he 1'WA 

ywlrsion plans terminat.cc1 on January 3, 2001. PHGC became trustee 

Lhc following day and has becn paying henrlf its in accordance with 

the t.ernis of the pension plans and IZI<lSA. 

3. Your Plan Benefits 

1)ocuments ava5lahlc to the Appeals Roard show t.haL you 

participated in the TWA Retirement Plan for Non-Contract: I411ployees 

(thr Non-K Plan) until January 1, 1992, whcn you .hccame a 

pal-L 1 cipant in the TWA 1kt.ircment. PI an f or Mechanics and Itel ated 
:1i1cye, Dining Servi ce F:mpl c>yc.cs and i'i~sscnger Servi ce F:nployees 

(tho IAM 1'1 an) . The qovc.1-ning documents lor these two plans show 

that. the Non-K Plan has a sa1a1-y-hascd formula while the IAM Plan 

has a service-lased f orniula. 

Enclosure 1 js a cmpy of 1'WA's c:alc:ulation of your boncf it. 

unc1e1- the Non-K Plan. It. shows that your accrucd benefit was 

$594.30 payable as a Straight 1,ife Annuity starting at age 62. 

Ilowcvrrr, because you started 1-ec:ei vi ny your hcnef i t j n November 

1 997 when you wc:rc> 55 year:: ol cl, your ac:c:1-uc!d hcwcf i t war: rcduc:c%cl 

1:ry !,Uper year (from age 6% to a~c 55) to I-cflrrct. the lcmgcr pc!riocl 

cd ~~ayr~wnt.. 'J'hus, because you cii tl noL wait unti 1 age 62 t.o start 

I-rceivj r;q your benefit., your month1 y bcmc:fi t under the Ncx-K Plan 

js $386.30 ($591 .30 1.jrnc.s 65%). 

.. Kncj osure 2 i r: a copy of TWA' F; c3el.crrni nat i on of your )~cnef j t. 

ur~tlc,~- t hr: JAM 1'1 an baacd cm your rwl-vj r:e durj ng 199%. 11. shcrwr: 

I your accrued hcnef i 1 was $23. 31 payable as a Straight I,i f c! 

Anri:r;Cy s:L:ilrt inq at aqc 65. FIowcvcr, i~cc:au~c! you st.arl.ec1 rcccivincj 

your hrncfit. in. Novcmnbcr 3997 when you were 55 years old, your 

ac:crtlc!cl t~enef it was reduced hy 5% pcr year (from age 65 to age 55) 

1 v I-<,{ 1rc.t the longer pcrjod oi pay!nenL. Thus, hccausc you did noL 

wi~i t unt 11 aqe 65 t.o sLart rrc:eivjny your kwncf j t., your month1 y 

Iwncsf j 1 uncle]- tlw IAM 1'1~111 ir: $11.67 ($93 .:i4 t.jrnc!a 50%) . 

''hu, all.houy11 you)- total accn~c!d bc!nc:fiL under the two plan:; 

was $617.64 ($591.30 plus $23.34), t.hat amount wan reduced t.o 

$397.97 ($3L16.30 plus $11.67) hccause you chose to start: to receive 

your benc!fit at. age !>I,. 

4. The IAM "B" Plan 

7'hc ]AM "J3" plan is not. a clef ined hcnefit plan, and therefore, 

benc!f its payable to you under that plan, if any, are not insured by 

C You may dl rcct questions rcgarcli nq any hcnef its payable to 

you uliclcr- the? "H" plan to thc main off jc:~ of IAM I>istrict 11142 aL 

fii r 'i'rsns:port '1Iistric:t. 14%. 400 N.K. 32na Avenue, Kansas City, MO 

G4116. 7'hc majn oiijce's telephone number- is 1-R16-452-6646. 

Havjng applied the law ancl IT3GC's rules t.o the fact.s in this 

case, the Appeals Lloal-d decided that we must. deny your appeal. 

l'his ckxision is Lhc agency's final action regarding your appeal. 

You may, if you wish, seek court review of this decision. 

PLEASE NOTE that I'HGC wil I always, even after an appeal j s 
c:lor:c.d, consiclcr any new, spcci f ic: cvidcnc~ that you present 

sh:,wjng you may bc cnt.jtlcd Lo a hiqhc31- lwnefit. If you have or 

crbiajn any such cvidcnce, please sc~d it. t.o I'tGC, ALkn: Insurance 

.t is IkparL ment , 'I'rustrx!.c,hi p PC.: I J)j vi sion 11 1 , 

0. 13ox 151'150, ~lcxai~cii-in, Viqinja 2231:~ 1750. If you necd more 

i nf ornmt ion about. your bcncii l , pl case cal I Lhc: Customer Cant-act 

Center at 1-800-400-7242. 

Mi chcl 1,ouj s 

Appeal n Uoard Mcmbcr 

cc: : 'I'lie Honorabl c Mi tc:h McC:onncI I