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$ I A Pension Benefit Guaranty Corporation 8 

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WC YL-IIIU~. 1200 K Street. N.W., Washington, D.C. 20005-4026 

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Re: Appeal Peter J. Schmitt Employees 

Retirement Plan (the "Plan") 

The Appeals Board reviewed your appeal of PBGC's September 18, 

2001 determination that you are not entitled to a vested benefit 

from the Plan. As explained below, although the Board disagreed 

with PBGC' s reason, the Board found that you presented no basis for 

changing the determination's conclusion that you are not entitled 

to a vested benefit from the Plan. 

PBGC determined you were not eligible to receive a vested 

benefit from the Plan because you did not have at least five years 

of service when your employment with Peter J. Schmitt ("PJS") 

ended. PBGC's letter said that the Plan required at least five 

years of service in order to qualify for a vested pension benefit. 

PBGC's letter did not include the data it used to reach the 

conclusion that you had less than five years of service. 

Your September 25, 2001 appeal stated that you were employed 

with PJS from July of 1982 to April of 1988, and therefore. that 

you had more than the required five years of service needed to 

qualify for a vested pension benefit. 

Please note that the Plan did not have sufficient assets, when 

the Plan terminated on December 31, 1994, to provide all benefits 

that PBGC guarantees under the Employee Retirement Income Security 

Act of 1974, as amended ("ERISA"). Therefore, PBGC must use Plan 

provisions, ERISA, and PBGC's regulations and policies to determine 

whether you are entitled to a guaranteed benefit. 

Documents in PBGC files show you started working for PJS on 

August 9, 1982 and your PJS employment ended on A-, 

dates reasonably consistent with your appeal. Under the terms of 

the Plan, you had 6 full years of service when your employment 

ended. 

However, the Plan provisions in effect when your employment 

with PJS ended required a participant to have completed 10 years of 

service in order to qualify for a nonforfeitable (vested) pension 
benefit. See Enclosure 1. The effective date of the Plan's change 

of its vesting schedule from 10-year-cliff vesting to 5-year-cliff 

vesting was Nav 1. 1988, and thus, the 5-year-cliff vesting 

schedule applies only to participants whoseemployment ended after 

April 30, 1988. See Enclosure 2. 

Thus, while the Appeals Board agrees with you that PBGC1s 

determination letter did not provide a correct reason for your nonvested status, because six years is indeed longer than five years, 

the Board must apply the provisions in effect as of the date your 

employment with PJS ended. Thus, the Board found that you are not 

entitled to a vested benefit under the Plan because you had less 

than 10 full years of service when your employment ended. 

Please note that PBGC will always, even after an appeal is 

closed, consider any new, specific evidence (for example, W-2 forms 

or Social Security Earnings reports showing that you worked at 

least ten years for PJS or one of its related entities; or a letter 

you may have received from PJS when your employment ended saying 

that you were vested in a benefit under the Plan), that you present 

showing that you may be entitled to a vested benefit. If you have 

or obtain any such evidence, PBGC will certainly review it. Please 

send any such information to PBGC at P.O. Box 19153, Washington 

D.C. 20036. 

Decision 

Having applied the provisions of the Plan to the facts in this 

case, the Appeals Board found that you are not entitled to a vested 

benefit under the Plan because you had less than the required ten 

years of vesting service when your employment ended. 

This is the agency's final decision regarding the issue you 

raised in your appeal. You have exhausted your administrative 

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

We appreciate your patience while we completed our review. If 

you have additional questions, please call PBGC's Customer Service 

Center at 1-800-400-7242. 

Sincerelv. 

Michel Louis 

Appeals Board Member 

Enclosures (2)