A Pension Benefit Guaranty Corporation 1200 K Street, N.W., Washington, D.C. 20005426 

OCT 3 1 2002 

Re: Appeal 1 Retirement Plan for Employees of P*I*E Nationwide, Inc. 

("Nationwide Plan") 

The Appeals Board has reviewed your appeal of PBGC's October 26,1998 determination 

that you are not entitled to a benefit from the Nationwide Plan because you did not earn endugh 

credited service to be vested. Your December 9, 1998 appeal said that you are entitled to a 

Nationwide Plan benefit. To support your position, you included a P*I*E Nationwide Pension 

Plan Statemen! @Deferred Vested Benefit, dated May 17, 1990, stating that you are vested under 

that Plan, and two documents relating to P*I*E1s Stock Investment Plan that show you were 

participating in that plan (which PBGC does nor insure) during 1988. For the reasons described 

below, the Board changed your Credited Service Start Date to December 2, 1982, and found that, 

as a result of the change, you are vested under the Nationwide Plan. 

P*I*E adopted the Nationwide Plan on June 10, 1986, and made it effective on January 1, 

1986. The Nationwide Plan covered both hourly and salaried employees, with different benefit 

formulas for each group. PBGC's files show that P*I*E adopted amendments to the Nationwide 

Plan on March 13,1990, and made them effective January 1, 1989. These amendments increased 

benefits for some'^*^*^ participants and decreased benefits for others (when compared to the 

amount a participant would have been entitled to upon leaving employment had the Plan not 

changed). . . 

The Nationwide Plan terminated, effective March 11, 1991, and PBGC subsequently 

became trustee. PBGGs files show that the Plan did not have sufficient assets when it terminated 

to provide all benefits PBGC guarantees under Title IV of the Employee Retirement Lncome 

Security Act. .. , . 

Before adopting the Nationwide Plan, P*I*E and its affiliates, including Ryder Truck, 

sponsored separate plans for hourly and salaried employees. These prior RyderlP*I*E Plans 

terminated, effective August 16, 1985, Y&LI sufficient assets to provide all plan benefits. The 

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P Plan Administrator purchased annuities from the Executive Life Insurance Company for each 1 .participant for his or her RyderWI*E benefit accnied as of August 16, 1985. The Aurora 

National Life Assurance Company,.which took over Executive Life, is responsible for paying this 

benefit according to the terms of Group Annuity Contract CQ-108. .. 

F; 

g The Nationwide Plan (section 4.5) has three different formulas for computing an annual 

4 benefit amount for salaried employees (the "Regular", the "Alternate" and the 

payable at age 65 for life with no survivor benefits. The Nationwide benefit is then equal to the 

largest of the three annual benefits, -.any Prior Plan annuities payable at age 65. 

Company records PBGC's auditors obtained when the Nationwide Plan terminated include 

copies of various P*I*E employment forms that show the following employment history for you: 

Date hired 

Your employment terminated 

Prior Plan terminated 

Date rehired - 

Your employment terminated 

Nationwide Plan terminated 

August 2, 1982 

June 14, 1985 

August 16, 1985 

September 10, 1987 

May 6, 1989 

March 11. 1991 

Although PBGC's October 26, 1998 letter did not indicate the basis for its determination, PBGC 

took into account only your second period of employment in determining that you were not vested 

in a Nationwide Plan benefit. 

The former Plan Administrator's lit bf the annuities purchased from Executive Lie show 

that you are entitled to an annual benefit of $1,528.20 from the Prior Plan. This benefit amount 

is consistent with your fmt period of employment shown above. PBGC's files also include a 

copy of a P*I*E Form 4327, "Employee Information for New Employees," which was signed 

ad dated in September, 1987. This form indicates that you were a former employee, lists both 

the fist and second hire dates shown above, and includes the notation "CSD 12/2/82." Also, the 

Plan Stntement you included with your appeal shows you as vested. 

In response to my call asking whether you had worked for P*I*E between June 14, 1985 

ad September 10, 1987, explained that you were "laid off" for about 4-6 weeks 

beginning on June 14, 1985. P*I*E then brought you back as a part-time or casual employee, 

although you actually averaged about 40 hours per week (48 hours one week and 32 hours the 

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next). 7 said this arrangement continued until September 9, 1987, when you again 

3 became a full-time empioyee. 

b *1 

\P With your permission, we reviewed your earnings history' from the Social Security I 

c. Administration for the years 1985-1991. You had earnings from P*I*E~~ each of the years 1985 

through 1989, which are consistent with your having worked,at least 1,000 hours in each year. 

Section 2.1 of the Nationwide Plan provides that each Employee (any person employed 

on a regular, full-time basis) who was a Participant under a prior Ryder/P*I*E Plan in.effect on . 

August 16, 1985 shall become a participant in the Nationwide Plan ". . . on the Effective Date . 

[January 1, 19861, provided he is still an Employee on such date." Under section 2.2, an 

Employee who is not covered under section 2.1 becomes a Participant "on the fmt day of the 

month coinciding with or next following his completion of one year of Vesting Service and the 

attainment of age 21. " 

Although you were a participant in the prior Ryder/P*I*E Plan, it appears that P*I*E did 

not initially consider .you a participagt under the Nationwide Plan while you were a casual 

employee. The Nationwide Plan's practice was to adjust the Credited Service Start Date to 

reflect previous employment and the former Plan Administrator's records show that they did so 

in your case. Thus, the Appeals Board found that, consistmi with Nationwide Plan practice, 

your first Date of Hire should have been reinstated ,pl your Credited Service Start Date adjusted 

to reflect the gap in your employment with P*I*E. Further, the "CSD" of December 2, 1982 

shown on your P*I*E Form 4327 is consistent with this adjustment. Accordingly, the Board 

changed your Credited Service Start Date under the Nationwide Plan to December 2, 1982, the 

same date used by the previous Plan Administrator. 

Effective January 1, 1989, the Nationwidewide Plan required that a participant have five 

years of Vesting Service to be entitled to a benefit. Plan section 1.32 defines Vesting Service as 

"any year in which an Employee prfonns 1,000 Hours of Service . . ." The Appeals Board 

further found that you are vested under the Nationwide Plan. However, because the oflet for 

your Ryder/P*I*E benefit (from Executive L#e/Auroia) accounts for a pomon of your total 

service, the Board's change to your .Nationwide Plan Credited Service Stan Dare may result in 

little or no additional benefit. 

Decision 

Having applied the law, the provisions of the Plan and PBGC regulations and policies to 

the facts in this case, the Appeals Board found that your Credited Service Start Date is 

December 2, 1982, and that you are vested under the Nationwide Plan. This is the Agency's ", 

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final decision on these issues. The Board will forward a copy of this letter to PBGC's Insurance 

Operations Department, who will issue you a new benefit determination using the correct 

Credited Service,Start Date. The new determination will give you a new 45dy appeal right for 

any other issues. 

Meanwhile, if ybu have any questions, please call PBGC's Customer Service Center at 

1-800-400-7242; 

Linda M. Mii 

Member, Appeals Board