PBGC Announces New Maximum Benefit for Terminating Plans
According to the announcement, the amount is higher for those who retire later and lower for those who retire earlier or elect survivor benefits. If a pension plan terminates in 2009 but a participant does not begin collecting benefits until a future year, the 2009 maximum insurance limits still apply.
The Pension Protection Act of 2006 provides that the maximum benefit payable is determined by the legal limits in force on the date of the plan sponsor’s bankruptcy and not on the date of plan termination, the Agency explained. Its research shows, the overwhelming majority of the participants in plans taken over by the agency face no reduction in benefits due to the legal limits on coverage.
Under the PBGC’s single-employer insurance program, retirees sometimes can receive more than the maximum guaranteed benefit if, in general, three conditions apply:
1) the participant earned a benefit in excess of the maximum guaranteed amount;
2) the participant retired or was eligible to retire at least three years prior to plan termination; and
3) the plan had sufficient assets to pay benefits above the guaranteed amount.
For more information, see PBGC’s fact sheet “Pension Guarantees” at http://www.pbgc.gov/media/key-resources-for-the-press/content/page13542.html .
The following chart shows the 2009 annual and monthly maximum benefit guarantees for retirees from age 75 to 45.
| Age | Annual Maximum | Monthly Maximum | Monthly Joint and 50% Survivor Maximum* |
|---|---|---|---|
| 75 | $164,160.00 | $13,680.00 | $12,312.00 |
| 74 | $149,256.00 | $12,438.00 | $11,194.20 |
| 73 | $134,352.00 | $11,196.00 | $10,076.40 |
| 72 | $119,448.00 | $ 9,954.00 | $ 8,958.60 |
| 71 | $104,544.00 | $ 8,712.00 | $ 7,840.80 |
| 70 | $ 89,640.00 | $ 7,470.00 | $ 6,723.00 |
| 69 | $ 80,460.00 | $ 6,705.00 | $ 6,034.50 |
| 68 | $ 72,360.00 | $ 6,030.00 | $ 5,427.00 |
| 67 | $ 65,340.00 | $ 5,445.00 | $ 4,900.50 |
| 66 | $ 59,400.00 | $ 4,950.00 | $ 4,455.00 |
| 65 | $ 54,000.00 | $ 4,500.00 | $ 4,050.00 |
| 64 | $ 50,220.00 | $ 4,185.00 | $ 3,766.50 |
| 63 | $ 46,440.00 | $ 3,870.00 | $ 3,483.00 |
| 62 | $ 42,660.00 | $ 3,555.00 | $ 3,199.50 |
| 61 | $ 38,880.00 | $ 3,240.00 | $ 2,916.00 |
| 60 | $ 35,100.00 | $ 2,925.00 | $ 2,632.50 |
| 59 | $ 32,940.00 | $ 2,745.00 | $ 2,470.50 |
| 58 | $ 30,780.00 | $ 2,565.00 | $ 2,308.50 |
| 57 | $ 28,620.00 | $ 2,385.00 | $ 2,146.50 |
| 56 | $ 26,460.00 | $ 2,205.00 | $ 1,984.50 |
| 55 | $ 24,300.00 | $ 2,025.00 | $ 1,822.50 |
| 54 | $ 23,220.00 | $ 1,935.00 | $ 1,741.50 |
| 53 | $ 22,140.00 | $ 1,845.00 | $ 1,660.50 |
| 52 | $ 21,060.00 | $ 1,755.00 | $ 1,579.50 |
| 51 | $ 19,980.00 | $ 1,665.00 | $ 1,498.50 |
| 50 | $ 18,900.00 | $ 1,575.00 | $ 1,417.50 |
| 49 | $ 17,820.00 | $ 1,485.00 | $ 1,336.50 |
| 48 | $ 16,740.00 | $ 1,395.00 | $ 1,255.50 |
| 47 | $ 15,660.00 | $ 1,305.00 | $ 1,174.50 |
| 46 | $ 14,580.00 | $ 1,215.00 | $ 1,093.50 |
| 45 | $ 13,500.00 | $ 1,125.00 | $ 1,012.50 |
*Both spouses the same age.