DEPARTMENT OF LABOR

Employment and Training Administration

TA-W-80,160

PENSION SYSTEMS CORPORATION
SHERMAN OAKS, CALIFORNIA

Notice of Negative Determination
on Reconsideration

The initial investigation, initiated May 10, 2011, resulted in
a negative determination, issued on July 20, 2011, that was based
on the finding that the subject firm does not produce an article.
The determination was applicable to workers and former workers of
Pension Systems Corporation, Sherman Oaks, California (subject
firm). The Department’s Notice of determination was published in
the Federal Register on August 12, 2011 (76 FR 80160). The
workers’ firm is engaged in activities related to the production of
401(k) pension software and published custom documents.
On September 23, 2011, a petitioner filed an application for
administrative reconsideration of the negative determination
regarding workers’ eligibility. However, prior to the conclusion of
the reconsideration investigation, the Trade Adjustment Assistance
(TAA) Extension Act of 2011 (the TAAEA) was passed.
The TAAEA required that the investigation into this petition
be reopened for a reconsideration investigation to apply the
requirements for worker group eligibility under chapter 2 of title
II of the Trade Act of 1974, as amended by the TAAEA, to the facts
of this petition.
Based on information reviewed during the reconsideration
investigation, the Department of Labor determined that the workers
of Pension Systems Corporation are not eligible to apply for TAA.
With respect to Section 222(a)(2)(A)(ii) of the Act, the
investigation revealed no increased imports by the subject firm
during the relevant period of articles like or directly competitive
with the 401(k) pension software and published custom documents
produced by the subject firm. The Department conducted a survey of
the subject firm’s declining customers, as requested in the request
for reconsideration. The survey revealed no increased imports of
articles like or directly competitive with the 401(k) pension
software and published custom documents produced by Pension Systems
Corporation.
The Department conducted an analysis of aggregate United
States imports of articles like or directly competitive with the
software and custom documents produced by Pension Systems
Corporation and industry trends, and determined that there were no
increased imports during the relevant period.
With respect to Section 222(a)(2)(B) of the Act, the
investigation revealed that the subject firm did not shift to a
foreign country or acquire from a foreign country the production of
articles like or directly competitive with the 401(k) pension
software and published custom documents produced by Pension Systems
Corporation.
With respect to Section 222(b)(2) of the Act, the
investigation revealed that Pension Systems Corporation is not a
Supplier to or act as a Downstream Producer to a firm that employed
a group of workers who received a certification of eligibility
under Section 222(a) of the Act, 19 U.S.C. § 2272(a).
Finally, the group eligibility requirements under Section
222(e) of the Act, have not been satisfied since the workers’ firm
has not been publically identified by name by the International
Trade Commission as a member of a domestic industry in an
investigation resulting in an affirmative finding of serious
injury, market disruption, or material injury, or threat thereof.
Conclusion
After careful review, I determine that the requirements of
Section 222 of the Act, 19 U.S.C. § 2272, have not been met and,
therefore, deny the petition for group eligibility of Pension
Systems Corporation, Sherman Oaks, California, to apply for
adjustment assistance, in accordance with Section 223 of the Act,
19 U.S.C. § 2273.
Signed in Washington, D.C. this 16th day of February, 2012

/s/ Del Min Amy Chen
______________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance


DEPARTMENT OF LABOR
Employment and Training Administration

TA-W-80,160

PENSION SYSTEMS CORPORATION
SHERMAN OAKS, CALIFORNIA

Negative Determination Regarding Eligibility
To Apply For Worker Adjustment Assistance
And Alternative Trade Adjustment Assistance

In accordance with Section 223 of the Trade Act of 1974, as
amended (“Act”), 19 U.S.C. § 2273, the Department of Labor herein
presents the results of an investigation regarding certification of
eligibility to apply for worker adjustment assistance.
Workers of a firm may be eligible for worker adjustment
assistance if they satisfy the criteria of subsection (a) and (b)
of Section 222 of the Act, 19 U.S.C. § 2272(a) and (b). For the
Department to issue a certification for workers under Section
222(a) of the Act, 19 U.S.C. § 2272(a), the following three
criteria must be met:
(1) The first criterion (set forth in Section 222(a)(1) of the
Act, 19 U.S.C. § 2272(a)(1)) requires that a significant
number or proportion of the workers in such workers' firm, or
an appropriate subdivision of the firm, have become totally or
partially separated, or are threatened to become totally or
partially separated
(2) The second criterion (set forth in Section 222(a)(2) of the
Act, 19 U.S.C. § 2272(a)(2)) may be satisfied in one of two
ways:
(A) Increased Imports Path:
(i) sales or production, or both, at the workers’ firm must
have decreased absolutely, AND
(ii) imports of articles like or directly competitive with
articles produced by such firm or subdivision have
increased; and
(iii) the increase described in clause (ii) contributed
importantly to such workers’ separation or threat of
separation and to the decline in the sales or
production of such firm or subdivision.

(B) Shift in Production Path:
(i) there has been a shift in production by such workers’
firm or subdivision to a foreign country of articles like
or directly competitive with articles which are produced
by such firm or subdivision; and
(ii)(I) the country to which the workers’ firm has
shifted production of the articles is a party to a free
trade agreement with the United States;
(II)the country to which the workers’ firm has
shifted production of the articles is a beneficiary
country under the Andean Trade Preference Act, African
Growth and Opportunity Act, or the Caribbean Basin
Economic Recovery Act; or
(III)there has been or is likely to be an increase in
imports of articles that are like or directly
competitive with articles which are or were produced by
such firm or subdivision.

For the Department to issue a secondary worker certification
under Section 222(b) of the Act, 19 U.S.C. § 2272(b), to workers of
a Supplier or a Downstream Producer, the following criteria must be
met:
(1) a significant number or proportion of the workers in the
workers’ firm or an appropriate subdivision of the firm
have become totally or partially separated, or are
threatened to become totally or partially separated;
(2) the workers’ firm is a Supplier or Downstream Producer to
a firm that employed a group of workers who received a
certification of eligibility under Section 222(a) of the
Act, 19 U.S.C. § 2272(a), and such supply or production
is related to the article that was the basis for such
certification; and
(3) either
(A) the workers’ firm is a supplier and the component parts
it supplied to the firm described in paragraph (2)
accounted for at least 20 percent of the production or
sales of the workers’ firm; or
(B) a loss of business by the workers’ firm with the firm
described in paragraph (2) contributed importantly to the
workers’ separation or threat of separation.

Section 222(c) of the Act, 19 U.S.C. § 2272(c), defines the
terms “Supplier” and “Downstream Producer.”
The investigation was initiated in response to a petition
filed on May 10, 2011 by a company official on behalf of workers of
Pension Systems Corporation, Sherman Oaks, California (Pension
Systems). The workers’ firm is engaged in activities related to the
supply of pension administration and recordkeeping services. The
worker group does not include on-site leased workers.
The petitioner alleges that worker separations are due to “off
shoring” of work, mostly to India. During the course of the
investigation, information was collected from the workers’ firm.
The investigation revealed that Pension Systems does not
produce an article within the meaning of Section 222(a) or Section
222(b) of the Act. Rather, the workers’ firm supplied services
related to pension administration and recordkeeping services.
In order to be considered eligible to apply for adjustment
assistance under Section 223 of the Trade Act of 1974, the worker
group seeking certification (or on whose behalf certification is
being sought) must work for a “firm” or appropriate subdivision
that produces an article. The definition of a firm includes an
individual proprietorship, partnership, joint venture, association,
corporation (including a development corporation), business trust,
cooperative, trustee in bankruptcy, and receiver under decree of
any court.
In order for the Department to issue a certification of
eligibility to apply for alternative trade adjustment assistance
(ATAA), the worker group must be certified eligible to apply for
trade adjustment assistance (TAA). Since the workers are denied
eligibility to apply for TAA, the workers cannot be certified
eligible for ATAA.
Conclusion
After careful review of the facts obtained in the
investigation, I determine that all workers of Pension Systems
Corporation, Sherman Oaks, California, are denied eligibility to
apply for adjustment assistance under Section 223 of the Trade Act
of 1974, and are also denied eligibility to apply for alternative
trade adjustment assistance under Section 246 of the Trade Act of
1974.
Signed in Washington, D.C., this 20th day of July, 2011


/s/Del Min Amy Chen
_____________________________
DEL MIN AMY CHEN
Certifying Officer, Office of
Trade Adjustment Assistance






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