Pension Benefit Guaranty Corporation ~M~~*C1~ 1200 K Street, N.W.. Washington, D.C. 200054026 

Re: Appeal Plabell Rubber Products Inc. Hourly Pension Plan 

The Appeals hard has reviewed your appeal of PBGC's September 21, 2001 

determination that the amount you are currently receiving ($72.1 1 per month as a lifetime annuity 

with no survivor benefit) is the correct amount of your benefit. As explained below, we are 

increasing your benefit amount from $72.11 per month to $210.85 per month. 

According to your October 10, 2001 appeal, you received Workers' Compensation 

payments as a result of an injury you suffered on October 8, 1992 at the Plabell plant. You 

believe that you are entitled to your "full pension" because the Company forced you to retire on 

June 26. 1996. before you reached age 62. 

Plabell Rubber Products. Inc. filed for bankruptcy on November 22. 1991. On April 8. 

1993, all Plabell's assels were sold to St. Clair Rubber Corporation, an unrelated company, and 

Wabell ceased operations. The Plabell Plan terminated, effective April 8, 1993, and PBGC 

subsequently became trustee. 

When the Plan terminated, it did not have sufficient assets to provide all benefits PBGC 

guarantees under Title IV of the En~ployee Retirement l&me Security Act (ERISA). The terms 

of the Plan, the provisions of ERlSA, and PBGC's regulalions and policies govern what PBGC 

can pay you. PRGC's regulations require that, to be entitled to a guaranteed benefit, a participant 

must satisfy the condition$ of the plan necessary to establish the right to receive the bcnefit before 

the earlier of the date the participant's employment ended or the date the plan terminated. 

PnGC determined that you werc entitled to the Plan's Normal Retirement benefit under 

Plan scction 5.1. Had yw waited until your Normal Retirement Date of September 1. 2005 (the 

first of the month following your 65th birthday) to start your benefit, the benefit statement PBGC 
first of the month following your 65th birthday) to start your benefit, the beneft statement PBGC 

included with its September 21.2001 letter showed that your Normal Retirement benefit would 

have been $210.85 per month, payable for life with no survivor benefit. Because you elected to 

begin your bencfit effective August 1, 1997 (at age 56 and 11 months), PBGC reduced your age65 benefit as required by the Plan for early paynient of a Nonnal Retirement benefit. Your appeal 

said that you were entitled to the full amount of your pension because of your work-related injury. 

According to section 5.4(a) of the Plabell Plan, a participant who be came^ Totally and 

Permanently Disabled prior to retirement or separation from service shall be entitled to a 

Disability Retirement benefit if such condition continues for a period of six consecutive months 

and by reason thereof such Participant's status as an Employee ceases. Plan section 1.54 defines 

Total and Permanent Disabiliw as "a physical or mental condition of a Participant resulting from 

hodity injury, disease, or mental disorder which renders him incapable of continuing his usual and 

custoniary en~ployment with the Employer." 

Documents PBGC's auditors obtained from the prior Plan Administrator show that you 

suffered a work-related injury at the Plabell plant on October 8, 1992, as you bid in your awl. 

These files show that you returned to work at the plant (first for Plabell, then for St. Clair) until 

May, 1993, and that you were being treated by your physician for severe pain during that period. 

On May 4, 1993, you saw an orthopedic specialist, who described your symptoms as 

"unrelenling," wncluded that your shoulder injury required surgery and performed that surgery 

three weeks later. You remained out of work for about a year while undergoing rehabilitation. 

You then attempted to return to work in less physically demanding jobs and were unable to do so 

successfully. The conlpany eventually terminated your employment on June 26. 1996. 

The medical evidence in the filcs available to the Appeals hard shows that you did suffer 

a specific. disabling injury prior to April 8, 1993, the Plan termination date. The record clearly 

denionstrates that, although you followed medical advice in an attempt to recover, including 

surgery and therapy, your injury rendered you "incapable of continuing [your] usual and 

custoniary employment with the Employer." Even though you did continue working for a few 

weeks past the Plan termination date as if your injury were a temporary one, the medical records 

show that you were unable even at that time to do the heavy lining your "usual and customary 

einpbyment" required. 

Based on the information available to us, the Appeals Board found that you had satisfied 

the Plan's definition of Total and Permanent Disability as of the Plan termination date and that 

you are, therefore, entitled to a Disability Retirenwnt benefit under Plan section 5A(a). The 

lloard concluded that a Disability Retirement benefit for a participant who becomes disabled on 

or bcfore separating from service is equal to the participant's Normal Retirement benefit without 

reduction for the earlier start date. 
Having applied the law, the provisions of the Plan and PBGC policy to the facts in this 

case, the AFpals Board found that you are entitled to a Dibility Retirement benefit of $210.85 

per month, beginning August 1. 1997, as a lifetime annuity with no survivor benefit. When 

PBGC's Insurance Operations Department, the group responsible for determining and paying 

benefits, receives a copy of this letter, they will increase your monthly benefit to the correct 

amount. They will also pay you, in a single lump sum with interest, the difference between the 

amounts you should have received and the amounts you did receive. 

This is the agency's final decision on this matter and you may, if you wish, seek court 

review. If you have questions, please call PBGC's Customer Service Center at 1-800-400-7242. 

Sincerely, 

Linda M. Mimi 

Member. Appeals Board