Annuity Purchase and the 2009 PBGC Guarantee for Under-Funded Benefit Plans Announcement
The PBGC has announced that the maximum benefit it will guarantee for retirees in under-funded single-employer defined benefit plans that terminate in 2009 will be $4,500 per month.
Under ERISA, the maximum guaranteed amount must be adjusted annually based on changes in the Social Security contribution and benefit base.
The maximum guarantee applies to workers who retire at age 65 or later. Maximum guarantees are reduced for retirees taking earlier retirement or electing survivors' benefits.
In some instances, where a pension plan has adequate resources or PBGC recovers sufficient amounts, a participant may receive benefits in excess of the maximum guarantee.
Further Reading For Retirement Benefit Issues:
- Failure to Inform That Benefit Choice Was Irrevocable
- PBGC Finds Pension Under-payments in Audits of Standard Terminations
- Senate Committee Hearing On Benefit Miscalculations
- Will My Money Last for the Rest of My Life?
- Court Okays Increasing Plan's "Normal Retirement Age" From Age 65 to 67
- PBGC Announces Maximum Guarantee for Underfunded Terminating Plans
- Survey Finds Baby Boomers, Especially Women, Headed for Financial Disaster in Golden Years
- Retroactive Amendment Reducing Required Contributions Permitted for Highly Compensated Employees Only
- Retirement Planning: Making It Last Forever
