PBGC to pay A&P Underfunded Pensions

[imoldernu]

The Pension Benefit Guarantee Corporation announced it will supplement Pensions for the A&P Plan, now that the Company is bankrupt.

PBGC to Pay Pension Benefits for A&P Grocery Chain Employees

The FAQ's about pension guarantees are here:

FAQs - Insured Plans & Benefits at Pension Benefit Guaranty Corp

If you are not completely sure of how your pension plan would be guaranteed or the date which the guarantee would take effect, it would be well to understand the rules which apply, as there could be a shortfall. The total that the PBGC will pay for the A&P conglomerate is nearly $300 million. The maximum individual payout from the PBGC is $57,500/yr, taken at age 65.
In any case, knowing the intricacies of the guarantee plan should be worth the time spent in reading the link... just in case.

Perhaps someone here could explain what would happen if the PBGC should not be able to cover the guarantees, since the PBGC is not governement funded. The PBGC currently funds pensions for 1.5 million people in failed plans and covers 10 million pensions.. The plan is expected to be solvent through 2025, an improvement from the 2014 projection of solvency through 2022.

 

[MasterBlaster]

The maximum individual payout from the PBGC is $57,500/yr, taken at age 65.

For what it's worth:
Those are 2013 maximums. For 2016 the maximums are $5011.36/month or $60136/yr., taken at age 65

Perhaps someone here could explain what would happen if the PBGC should not be able to cover the guarantees, since the PBGC is not government funded. The PBGC currently funds pensions for 1.5 million people in failed plans and covers 10 million pensions.. The plan is expected to be solvent through 2025, an improvement from the 2014 projection of solvency through 2022.

There are some things that can be done. Note that the PBGC recently increased member fees to fund all these bankruptcy pensions.

But more likely that's where the politics start. There are no explicit guaranty's. Maybe you can get in line for help from Washington. Just remember that you'll be standing in line with Social Security/Medicare and other funding issues as well other underfunded pensions like the Post Office. The question is.... Who gets funded when the money runs out ?