The PBGC maximum guarantee is determined using a formula in federal law tied to the Social Security index. How does PBGC calculate the Maximum Guarantee Tables? Please note: The age reduction does not apply to certain disabled participants (see Guarantees for Disabled Participants). Generally, if your annuity provides a larger percentage as a survivor benefit, your maximum monthly amount will be lower. If you elect a different form of annuity, your maximum guarantee amount will be different. The table gives maximum guarantee amounts for the two most common forms of annuity: straight-life annuity (without survivor benefits) and joint-and-50% survivor annuity (which continues to pay 50% of the benefit to a surviving beneficiary). It depends on the form of annuity in which you receive your benefit. The date you started receiving a benefit from PBGCĪfter I find my age on the table, which column applies to me? The date you started receiving a benefit from the plan The date the employer filed for bankruptcy protectionĪfter your employer enters bankruptcy and before the plan terminates However, if your plan ends while your employer is in bankruptcy, the following special rules apply: Your maximum guarantee amount is generally based on your age when you first start receiving a benefit from PBGC. What age do I use to find my maximum guarantee amount? However, if your plan fails while your employer is in bankruptcy, it’s the table for the year in which your employer entered bankruptcy. the calendar year that includes the plan's termination date). In general, the relevant table is the table for the year in which your plan fails (i.e. If your employer was in bankruptcy on that date, you also need to know the date your employer filed in court for bankruptcy protection. To find your table, you need to know the date your plan ended (called date of plan termination). There is a separate table for each calendar year. How do I find the maximum monthly guarantee table that applies to me? Please note: Most benefits in PBGC-trusteed plans are lower than the maximum and not affected by legal limits. The maximum amounts that PBGC can guarantee are listed by age in the following Maximum Monthly Guarantee Tables. One of those legal limits is the maximum guarantee. When PBGC becomes trustee of a pension plan, we can guarantee benefits only up to limits set by federal law. Information on multiemployer guarantees is included on our Multiemployer FAQ page. These guarantees do not apply to multiemployer plans. The maximum guarantees in these tables apply only to single-employer pension plans whose benefits PBGC pays as trustee.
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