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.