Opinion ID: 430879
Heading Depth: 2
Heading Rank: 2

Heading: Appellants Apply to PBGC for Pension Plan Insurance Coverage Under ERISA

Text: 9 Congress established PBGC on September 2, 1974 to administer the pension plan insurance provisions of ERISA. 29 U.S.C. Sec. 1302 (1976). ERISA provides a comprehensive insurance program for certain pension plans that terminated on or after September 2, 1974. Id. Sec. 1461(a). ERISA also provides retroactive insurance coverage for certain pension plans that terminated between July 1 and September 1, 1974. Id. Sec. 1461(b). This retroactive coverage period commonly is called the window period. Congress expressly tasked PBGC with determining whether a plan seeking window period coverage terminated during the window period. Id. Congress established two tests for making this determination: PBGC shall make the determination on the basis of the date on which benefits ceased to accrue [the ceased to accrue test] or on any other reasonable basis consistent with the purposes of this subsection [the other reasonable basis test]. Id. 10 On September 13, 1974, appellants applied to PBGC for pension plan insurance coverage under the window period provision of ERISA. J.A. at 593. PBGC applied the other reasonable basis test and, based upon the de minimis participation by appellants in the plan after June 30, 1974, concluded that the plan terminated before July 1, 1974. Accordingly, in June 1975, PBGC notified appellants that the Georgia-Pacific Pension Plan was not eligible for window period coverage. Id. 11 In December 1975 and June 1976, PBGC reviewed its decision that appellants' pension plan terminated before July 1, 1974. J.A. at 593. Appellants, assisted by their union and by Georgia-Pacific, submitted additional factual materials to PBGC. Id. at 55, 65, 68. PBGC nevertheless affirmed its earlier decision. Id. at 593. In October 1977, PBGC determined the case should not be reopened. Id. at 131.