-3-

your I I YS&T employment {19.667 years} minus your ~I ___ _

{2.583 years} absence from YS&T Plan service. See the table above. 

Therefore, we are changing your YS&T Plan accrued benefit to the 

$302.02 amount YS&T calculated, based on 17.08 years YS&T Plan 

service. 

8.833 Years Republic Hourly Plan Service Used 

Your Republic Hourly Plan benefit calculations depend on your 

service and on contributions LTV made to the DCP. LTV started the 

DCP following the January 13, 1987 termination of its defined 

benefit pension plans for hourly employees. Those defined benefit 

plans were restored to LTV following a 1990 Supreme Court decision 

- and were terminated again March 31, 2002. 

Based on your 1 11979 hire date, and Plan provisions, 

LTV calculated your Republic Hourly Plan service two ways: 

(i) LTV calculated the $90.86 Republic Hourly Plan benefit PBGC 

used, then corrected it slightly to $91.08. 5 They used 7.25 

years Republic employment, 1 11979 - January 13, 

1987, and deducted for "Additive Contributions" to the DCP. 6 

(ii) Your benefit service I I 1979 through thel "-----~~-------:~ 1988 sale date is 8.833 years. The 8.833 years includes the 

period beginning January 13, 1987 when LTV provided regular 

DCP benefits even if prior Republic Hourly Plan benefits were 

vested. Thus, your Republic Hourly Plan benefit based on all 

8.833 years Republic service is $47.17 {$154. 58 7 - $71.61 

regular DCP Annuity Equivalent - $35.80 DCP "Additive" Annuity 

Equivalent} . 

Therefore, LTV used all 8.833 years of your Republic service but 

found your benefit is largest under formula (i), which uses only 

your first 7.25 years of Republic employment. We are also 

correcting your PBGC-Republic benefit slightly to the $91.08 LTV 

calculated. 

5 $17.50 rate x 7.25 years - $35.80 Annuity Equivalent from 

"Additive" DCP contributions. See Enclosure 1 to this letter. 

6 You $91.08 benefit was not vested when ~he Republic Hourly 

Plan terminated in 1987. Therefore, LTV made extra DCP 

contributions for you, called "Additive Contributions." However, 

following a 1990 Supreme Court decision, the Republic Hourly Plan 

needed to be reinstated. Thus, your Additive Contributions were 

made under an assumption which would no longer be true. 

7 $17.50 rate x 8.833 years. See Enclosure 1. 
-4-

The calculations above show: 

• PBGC is using 25.913 {1 7.08 + 8.833} total years benefit 

service during the 24-year period from your August 1964 hire 

date through the August 1988 WCI sale date. You earned 

overlapping benefit service while you were on layoff at YS&T 

and working at Republic, and 

• PBGC is using all of your benefit service from ,---1 __ ~ __ 11964 

through 1988, as you asked in your appeal. 

Almost 21 Years Republic Hourly Plan Eligibility Service 

The Republic Hourly Plan does not include your August 1964 -

August 1979 YS&T employment in your service, because YS&T was not 

related to Republic yet. Similarly, neither law nor policy 

requires using unrelated 1964-1979 YS&T employment under the 

Republic Hourly Plan. Thus, under the Republic Hourly Plan, your 

eligibility service: 

• started with your I 1979 Republic/WCI hire date, 

• ended August 3,1, 2000, when your WCI employment ended, and 

• totaled slightly less than 21 years. 

Therefore, your $91.08 Republic Hourly Plan benefit is a 40/15 

Deferred Vested Pension: unreduced for starting early at age 62, 

and reduced if started early between ages 60 and 62. 

30+ Years Eligibility for $302.02 YS&T Plan Benefit 

PBGC found you earned more than 30 years eligibility service 

for your $302.02 YS&T benefit, because in addition to your 17.08 

years benefit service: 

• LTV granted eligibility service beginning June 29, 1984 when 

your employer Republic Steel/WCI was in YS&T's controlled 

group, and 

• following WCI's 1988 sale until your WCI employment ended in 

2000. 8 

Therefore, your $302.02 YS&T benefit was payable unreduced under a 

30-Year Retirement starting 2000, the day after your 

WCI employment ended. 

Error Starting $302.02 YS&T 30-Year Retirement 

We found that when your WCI Steel employment ended in 2000, 

you applied for a 30-Year Retirement. You were then paid a 30-Year 

Retirement under WCI's pension plan. However, WCI and LTV found 

under the LTV Hourly Plan you were entitled only to your $91.08 

8 See Enclosure 2 page 133. 
-5-

40/15 Deferred Vested Pension, from your Republic/WCI service. They 

overlooked your $302.02 30-Year benefit derived from your YS&T 

service. See Enclosure 3. Further, a former LTV Hourly Plan 

administrator told us: 

(i) LTV probably erred in 2000 by not advising you of your 30-

Year eligibility to receive an unreduced YS&T benefit, and 

(ii) If such an error was uncovered, LTV would have allowed 

you to start your YS&T benefit retroactive to 

2000. 

The Appeals Board decided you may start the $302.02 YS&T 

portion of your LTV Hourly Plan benefit effective September 1, 

2000, because of your facts and circumstances,' including 

administrative error before plan termination. If you have any 

questions about applying for your PBGC benefits, please contact: 

PBGC Authorized Plan Representative 

PO Box 151750 

Alexandria, VA 22315-1750 

You may also contact PBGC's Authorized Plan Representative, at 1-

800-400-7242. 

Decision 

Having applied LTV Hourly Plan provisions to the facts in your 

case, the Appeals Board changed PBGC's determination as follows: 

• We are increasing the YS&T portion of your benefit from 

$202.50 to $302.02 per month if paid as a Straight Life 

annuity starting effective September 1, 2000. You may start 

your YS&T benefit retroactive to September 1, 2000, if you 

apply within 90 days of the date PBGC sends you an 

application. 

• We are increasing the Republic Hourly Plan portion of your 

benefit from $90.86 to $91.08 per month if paid as a Straight 

Life Annuity starting March 1, 2007. The $91.08 benefit will 

be reduced if started earlier. 

This letter concludes your administrative remedies with respect to 

PBGC's April 13, 2005 corrected determination. You may, if you 

wish, seek court review of PBGC's determination with respect to the 

issues you raised. Thank you for your patience while we carefully 

reviewed your appeal. 

Sincerely, 

Val. O. ~ William D. Ellis 

Appeals Board Member 
-6-

Enclosures: 

1) LTV's calculation of your $91.08 Republic Hourly Plan (WCI) 

benefit 

2) Excerpt from 1999 LTV Hourly Plan document. Appendix G 

permits: (i) continuing service, but for eligibility only, in 

some circumstances after a facility is sold, and (ii) requires 

otherwise determining benefits under the Predecessor Plan 

applicable at the time of the sale. (3 pages) 

(3) WCI notice that employment had ended and a $91.08 LTV 

Hourly Plan benefit would be payable starting March 1, 2007