PBGC pension Bendlt Guaranty Corporation 

-w- M... 1200 K Street, N.W.. Washington, D.C. 200054026 

JUN 24 2005 

Re: 1 Case 197454, Special Metals Corporation 

(SMC) Salaried Employees Pension Plan (the Plan) 

The Appeals Board reviewed your appeal of PBGC's April 22, 

2005 determination that PBGC would pay you a benefit as a level 

certain and life annuity with a survivor benefit instead of the 

increasing cert'ain and life annuity with survivor benefit 

(escalator annuity) that you were receiving from SMC. For the 

reasons stated below, the Appeals Board changed PBGC's 

determination by deciding that PBGC will pay your benefit as an 

escalator annuity. 

As a result of the Appeals Board's decision, PBGC will adjust 

your estimated benefit in the near future. ~fter PBGC completes 

its audit of the Plan's records and calculates final PBGC benefit 

amounts, PBGC will send you a formal benefit determination of the 

monthly amounts you will receive as an escalator annuity. 

Discussion 

The record shows that you began receiving a benefit under the 

Plan in accordance with your election of an escalator annuity under 

which you would receive the following monthly benefits: 

through 612001 . .. 1 $5~- 712008 .- through 6/20@ 

From 712001 through 612002 

From 712002 through 612003 

From 712009 through 612010 

From 712010 through 612013 

$604.32 

$705..04 

$1.410.08 

$1,410.08 
Under the escalator annuity form, if you should die before 

June of 2013, your designated beneficiary or beneficiaries would 

receive the remainder of the scheduled payments on a monthly basis 

through the June 2013 payment. The escalator annuity form also 

provides a monthly benefit to your spouse, if you die first, equal 

to 36% of the June, 2013 amount, which benefit would not become 

payable before July of 2013. 

PBGC's records indicate that (1) you received the scheduled 

amounts through June of 2004, (2) you received $805.76 per month 

for the months of July and August of 2004, (3) you started 

receiving an estimated level monthly annuity amount of $1,141.35 in 

September of 2004, and (4) your estimated level monthly annuity 

amount was increased to $1,234.68 in February of 2005. The records 

also show that you received a special lump-sum backpayment check of 

$470.86 in February 2005, representing the difference between 

$1,141.35 and $1,234.68 for the months of September 2004 through 

January 2005, including interest. 

Your May 9, 2005 appeal of PBGC's April 22, 2005 determination 

reviewed correspondence that you have had with PBGC since 

August 18, 2004, when PBGC first told you that you would be 

receiving a level annuity instead of an escalator annuity. Your 

appeal letter discussed, paragraph by paragraph, the contents of 

. PBGC's determination letter. In particular, with respect to 

paragraph #6, you said that PBGC's "leveling process is flawed and 

does not satisfy the annuity contract, which guarantees $1,410.08 

per month from 07-01-09 for the remainder of my life." 

Your appeal letter offered an alternative leveling method 

under which PBGC would pay you $1,410.08 for the rest of your life 

starting on July 1, 2005. You asked the Appeals Board to approve 

your alternate leveling method. 

Decision 

While the Appeals Board decided that the Board cannot approve 

the leveling method proposed in your appeal letter, the Board 

decided, based on the facts and circumstances of your case, that 

PBGC will pay your benefit in the form of an escalator annuity. 

The'Appeals Board will forward a copy of this decision to 

PBGC1s Benefits Administration & Payment Department (BAPD), the 

group responsible for paying benefits and issuing benefit 

determinations. BAPD will then adjust your estimated benefit so as 

to pay your benefit in the escalator annuity form. 
In the meantime, if you need other information from PBGC, 

please call the Customer Contact Center at 1-800-400-7242 and ask 

to speak to the Authorized Representative for the Plan. 

Sincerely, 

Michel Louis 

Appeals Board Member