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1 'BGC Pension Benefit Guaranty Corporation 

P,.,.C.,...,A~~~~~~~ pensions 1200 K Street. N.W.. Washington, D.C. 20005-4026 

I JUN 0 7 2005 

I I 

Re: Case 194025, Trans 

World Airlines, Inc. (TWA) Retirement Plan for 

Employees (the Plan) 

The Appeals Board reviewed the appeal you filed on behalf 

of your client, regarding PBGC' s January 30, 2004 

determination of her benefit from the Plan. For the reasons 

stated below, the Board found that you did not provide 

sufficient evidence to change PBGC8s determination, and that we 

must deny your appeal. 

PBGC's Determination and Tkppeal 

PBGC determined that is entitled to a monthly 

benefit of $191.19, payable as a Joint & 50% Survivor Annuity 

starting on her Actual Retirement Date (ARD = January 1, 2001) . The $191.19 monthly benefit is comprised of monthly benefits of 

$178.43 from the TWA Retirement Plan for Non-Contract Employees 

(the Non-Contract Plan) and $12.76 from the TWA Retirement Plan 

for Mechanics and Related Employees, Dining Service Employees 

and Passenger Service Employees (the PSE Plan) 

PBGC included Benefit Statements showing data used to 

calculate your client's benefits and also showing that PBGC 

accepted TWA's calculations of her monthly accrued benefits. 

Your February 6, 2004 appeal letter claimed that 

"PBGC's determination is wrong in thatadjusted date for hire was 

December 22, 1968. She joined TWA's retirement plan when she was hired by TWA on 

November 11, 1968. She has always elected to be a member of the retirement plan. 

The only forms which she completed were to join in 1968, naming as 

her beneficiary. In er primary beneficiary from10 

her current husband She never opted out of the retirement plan at 

any time during her tenure at TWA. 

. . . There would be no reason to change the beneficiary on the plan in 1981 if she had 

never been a member of the plan. . . ." 
Although an appeals analyst on September 28, 2004 asked you 

for any evidence supporting your client's claim that she joined 

the Plan in 1968, the Appeals Board has not received any such 

information supporting contention that she began 

her participation in the Plan before 1981. 

Discussion 

PBGC provides pension insurance in accordance with the 

Employee Retirement Income Security Act of 1974, - as amended 

(ERISA). If a plan sponsor is unable to support its pension 

plan, PBGC becomes trustee ,of the plan and pays pension benefits 

as defined in the plan subject to limitations and requirements 

set by Congress under ERISA. 

Records available to the Appeals Board reveal that the NonContract Plan and the PSE Plan merged into the TWA Retirement 

Plan for Employees (the Plan) in 1988. PBGC records show that 

the Plan terminated on January 1, 2001 and that PBGC became the 

Plan's trustee on January 2, 2001. 

The Plan provision related to appeal involves 

section 1.2 (kk) of the Non-Contract Plan. Section 1.2 (kk) 

provides as follows: 

"'Years of Plan Service' means all Service, beginning with the earlier of the Member's 

Plan membership date or the January 1 or July 1 following completion of one Year of 

Service, and ending not later than December 31, 1992. If the Employee did not join the 

Plan on or prior to July I, 1970, Service between July I, 1970 and his Plan membership 

date will be excluded. . . ." 

Thus, for participants in the Non-Contract Plan, Service 

was calculated by first determining the elapsed time from 

Service Start Date (generally the January 1 or July 1 following 

a Year of Service) to the participant's date of termination of 

employment or December 31, 1992 if earlier, because benefit 

accruals were frozen on December 31, 1992. The elapsed time 

from July 1, 1970 until the date of Plan Membership was then 

subtracted out to determine the Years of Plan Service used in 

calculating the retirement benefit amount. 

The only membership form that PBGC has on record is the 

form that signed on November 8, 1981. The form is 

the same form used by other Non-Contract Plan participants when 

they became members of the Non-Contract Plan. Based on that 
,1981 membership form, I 

January 1, 1982. 

1 Date of Membership is 

While it is true, as you suggested in our appeal, that 

there would have been no reason for to change her 

beneficiary designation if she were not at that time already a 

member of the Plan, the form she signed on November 8, 1981 was 

used for at least three distinct purposes. The form she signed 

is clearly titled "Application for Membership, Payroll Deduction 

Authority and Beneficiary Designation." Thus, the form she 

signed was the same form she would use to commence her 

membership in the Plan. 

Please note that the Appeals Board checked the records of 

other participants who similar1 dela ed participation in the 

Plan to make sure that situation was handled 

consistently by TWA while TWA was the Plan's administrator. We 

also searched for any evidence that was a member 

before July 1, 1970, such as employee contributions that might 

have been deducted from her pay, the accumulated value of 

contributions or any benefit statements that may have been sent 

to her. We were unable to find any such information in PBGC1s 

files to confirm her statement that she was a participant before 

January 1, 1982. 

Furthermore, according to 1 Social Security 

Administration (SSA) records, which she authorized PBGC to 

obtain, her total earnings for calendar year 1978 were 

$18,663.61. This amount is larger than the $17,700 SSA wage 

base for 1978. Thus, according to the Plan in effect in 1978, 

should have made Plan contributions equal to 2% x 

($18,663.61 - $17,700.00) , or $19.27, in 1978. Similarly, while 

the SSA records we reviewed did not show total earnings for 

years before 1978, they did suggest that she had earnings in 

excess of the SSA wage base in the years 1970 through 1974 and 

also in 1977. The Appeals Board found no evidence in PBGC files 

that ever made any employee contributions to the NonContract Plan. 

Since Date of Hire and Company Seniority Date 

are November 11, 1968, her Service Start Date is January 1, 

1970, the first January 1 after completion of one year of 

service. Her elapsed service from January 1, 1970 until 

December 31, 1991 is 22.0 years. Service from January 1, 1992 

to December 31, 1992, was credited to her under the PSE Plan and 

thus, does not count toward her Non-Contract Plan benefit. The 
elapsed time of her excluded service, from July 1, 1970 through 

December 31, 1981 is 11.5 years. So, -Benefit 

Service under the Non-Contract Plan is 10.5 (22.0 - 11.5) years. 

Decision 

Applying Plan provisions to the facts of this case, the 

Appeals Board decided that you did not provide sufficient 

evidence to change PBGC's determination, and we must deny your 

appeal. This decision is the agency's final action regarding 

your appeal. 1 may, if she wishes, seek court review 

of this decision in an appropriate federal district court. 

We regret the delay in resolving your appeal and appreciate 

your patience while we completed our review. 

additional questions about her benefit, she 

Customer Contact Center at 1-800-400-7242. 

Sincerely, 

Michel Louis 

Appeals Board Member