PBGC Pension Benefit Guaranty Corporation ~.~t~~ti~~ A~.~,~~.. ~~~~l~~. 1200 K Street. N.W., Washington, D.C. 20005-4026 

~ JUN 8.4 2005 

Re: 1 ~ethlehem Steel Corporation Pension Plan, Case # 196603 

The Appeals Board reviewed your appeal of PBGC's May 19,2004 determination that you 

are not entitled to a Rule-of-65 Retirement under the Bethlehem Plan. As explained below, we 

changed PBGC's determination by fmding that you are entitled to a Rule-of-65 Retirement. 

PBGC's Determination and Your Atmeal 

PBGC's letter said that Rule-of-65 eligibility under paragraph 2.7 of the 1999 Pension 

Agreement between Bethlehem and the United Steelworkers of America requires, in addition to 

specific age and service, that an employee has not been offered suitable long-term employment as 

defined in Appendix A of the Agreement. Paragraph 2.7 further provides that "if at the time of 

application for retirement his Employing Company has not yet determined whether the participant 

will be offered suitable long-term employment, the participant will not be eligible to retire until 

the earlier of the date on which the Employing Company advised the participant that he will not 

be offered suitable long-term employment or the date on which the participant incurs a break in 

continuous service." An employee breaks continuous service for pension purposes at the end of 

two years' absence because of layoff. 

PBGC also explained that, for a benefit to be guaranteeable under Federal law and PBGC 

regulations, a participant must have met the eligibility requirements for the benefit on the date of 

plan termination (December 18,2002, for the Bethlehem Plan). Although PBGC concluded that 

you met the age and sewice requirements, PBGC determined you are not entitled to a Rule-of45 

Retirement because, as of December 18,2002, Bethlehem had not advised youthat you would not 

be offered suitable long-term employment and you had not incurred a break in continuous service 

under the 2-year layoff provision as of that date. 

Your June 5, 2004 appeal cited a number of reasons why you believe you are entitled to 

a Rule-of-65 Retirement. 
Discussion 

The Bethlehem Plan terminated, effective December 18,2002, without sufficient assets to 

provide all benefits PBGC guarantees under Title IV ofthe Employee Retirement Income Security 

Act WSA). Approximately 14 months earlier, on October 15,2001, Bethlehem had filed for 

reorganization under Chapter 11 of the Bankruptcy Code. Bethlehem was unable to reorganize 

in bankruptcy as an ongoing company and, in 2003, it sold substantially all of its business assets 

to International Steel Group. 

The provisions of the 1999 Bethlehem Plan for the Steel Division for represented hourly 

employees apply to you. Paragraph 2.7 sets forth the specific age, service and employment 

conditions that a participant must meet to be eligible for a Rule-of-65 Retirement. As noted in 

PBGC's May 19,2004 determination, the records PBGC's auditors obtained £rom the former Plan 

Administrator show that (1) your last day worked was September 30,2001, the date Bethlehem 

shut down the coke operations at the Lackawanna Plant, (2) at the time of the shutdown, you had 

met the age and service requirements for aRule-of-65 Retirement, (3) you elected to be placed on 

layoff status as a result of the permanent shutdown, and (4) you were not offered suitable longterm employment after the shutdown. The Appeals Board further notes that employment 

opportunities at Bethlehem following the shutdown of the Lackawanna Plant appear to have been 

extremely limited due to the company's financial condition, and that the company in 2002 had 

determined for two other employee groups that suitable long-term employment was unavailable. 

Decision 

Having applied the law, the provisions of the Plan and PBGC policy to the very particular 

facts in this case, the Appeals Board found that you are entitled to a Rule-of-65 Retirement. We 

will forward a copy of this letter to PBGC's Benefits Administration and Payment Department, the 

group responsible for calculating and paying benefits. They will send you a new determination 

of your benefit amount and annuity starting date, with k new 45-day appeal right for matters not 

decided in this letter. 

Meanwhile, if you have questions, please call PBGC's Customer Contact Center at 1-800- 

400-7242. 

Sincerely, 

Linda M. Mi 

Member, Appeals Board