Q. What is the maximum amount that PBGC can guarantee by law?
A. PBGC's maximum benefit guarantee is set each year under provisions of ERISA. The maximum guarantee applicable to a plan is fixed as of that plan’s termination date except for cases where termination occurs during a plan sponsor’s bankruptcy, in which case the maximum guarantee may be fixed as of the date the sponsor entered bankruptcy. An earlier date also may apply to certain airline industry plans. For 2008, the maximum guaranteed amount is $4,312.50 per month ($51,750.00 per year) for workers who begin receiving payments from PBGC at age 65. The maximum guarantee is lower if you begin receiving payments from PBGC before age 65 or if your pension includes benefits for a survivor or other beneficiary. The maximum guarantee is higher if you are over age 65 when you begin receiving benefits from PBGC. A Web link at the end of this booklet will take you to a table that shows PBGC's maximum guarantee at various ages. For certain disability benefits, special rules apply (see the following question). Other guarantee limitations that may apply are described in the questions and answers that follow....
PBGC MAXIMUM MONTHLY GUARANTEES
Click the link below to see a table of the maximum amounts that PBGC can guarantee for a single life annuity with no survivor benefits and a joint-and-50%-survivor annuity for ages 45–65. The maximum is based on your age at the date you begin receiving benefits from PBGC. The age reduction does not apply to certain disability retirement benefits, as described in Your Guaranteed Pension. The maximum is lower if the benefit is paid in a form other than a single life annuity, such as a form that provides for survivor benefits.
Maximum monthly guarantee tables
