Pniotecting America's Pensions 

Pension Benefit Guaranty Corporation 

\200 K Street, N.W., Washington, D.C. Z.0005-402.6 

MAY 3 I 2005 

Re:L_~~~~~~~~-~~~~~~~~~~~~~Case 181249 

Memorex Telex Employees Pension Plan (the "Plan") 

Dear 

The Appeals Board has reviewed your appeal of PBGC's August 1, 

2002 determination that your client, is not 

entitled to a PBGC benefit. As explained below, the Board changed 

PBGC' s determination by finding that she is entitled to a PBGC 

benefit. 

Benefit Determination and Appeal 

PBGC's August 1, 2002 letter stated: "Our records show that a 

lump-sum payment of your pension benefits was made from the prior 

plan administrator, Memorex Telex, in the amount of $7, 392. 22 on 

March 1, 1993." 

In your September 9, 2002 appeal you stated: 

never received this lump-sum payment. . . . She requests a copy of 

the cancelled check, information concerning the bank that paid the 

check, details concerning the name signed on the back of the check, 

and whether PBGC has any evidence showing that the check was 

actually sent. I I suspects that the check was possibly 

returned as undeliverable because it was sent to an old address." 

Discussion 

When PBGC becomes trustee of a pension plan, PBGC auditors 

collect participant and plan records from the former plan 

administrator. Based on their review of the participant data and 

the sources of that data, PBGC auditors determine whether the former 

administrator's records are reliable. 

In this case, PBGC auditors determined that Memorex's listing 

of lump-sum calculations for certain Plan participants was generally 

reliable evidence that a lump sum was paid to those participants. 

The listing shows that a lump sum amount of $7,392.22 was calculated 

for I las of March 1, 1993. PBGC does not have a copy of 

a cancelled check establishing that received and 

deposited the $7,392.22 lump-sum payment in question. 

PBGC' s technical procedures provide that when the records 

maintained by a former administrator have been found reliable but 
i' 

-2-

PBGC does not have copies of cancelled checks or other proof of 

payment, a simple assertion of non-receipt does not constitute 

sufficient evidence that a lump-sum payment was not issued and 

received. 

on June 5, 2002, submitted a copy of her 1993 

federal and state tax returns (with several back-up documents) and 

of her 1993 Social Security Itemized Statement of Earnings. Based 

on our review of these documents, the Appeals Board found that 

~-----~did not report receipt of a Memorex pension payment on 

her 1993 tax returns. 

Under the provisions of the Plan, participants (like 

with benefits worth more than $3,500 were required to 

apply for their lump-sum payments. PBGC does not have a copy of a 

lump-sum application completed by 

Address records available to the Appeals Board tend to support 

a claim that might have changed her address sometime 

during the first five months of 1993. 

After reviewing all of the evidence in this case, the Appeals 

Board decided to accept ~----------" claim that she did not 

receive a lump-sum distribution of her Memorex pension benefit. 

Decision 

Based qn the facts and circumstances of this case, the Appeals 

Board changed PBGC's determination by finding that is 

entitled to a PBGC benefit. 

PBGC will send a new determination regarding the 

amount, form, and commencement date of her benefit. The new 

determination will include a new 45-day right of appeal. In the 

meantime, if she needs other information from PBGC, she may call 

PBGC's Customer Contact Center at 1-800-400-7242. 

Sincerely, 

Michel Louis 

Member, Appeals Board 

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