PBGC will pay retirement benefits for more than 4,400 current and future retirees of Constar Inc., a plastic container manufacturer based in Trevose, Pa. just outside Philadelphia.
The agency stepped in because the company is selling the majority of its assets in bankruptcy proceedings and the buyer isn't assuming responsibility for the pension plan.
PBGC will pay all pension benefits earned by Constar's retirees up to the legal limit of about $59,320 for a 65-year-old.
Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.
If you receive a retirement benefit from PBGC, all or some of the money may be taxable. Every year, we report this amount to the IRS and send you an IRS Form 1099-R that states the amount we paid you the previous year.
We'll mail your Form 1099-R for 2013 to your address of record by Friday, January 31, 2014. If you don't receive your form soon after the mailing date, we offer the following options:
- Use our online service, MyPBA, to view and print a copy of your 1099-R tax form for the most recent tax year.
- Call PBGC's Customer Contact Center at 1-800-400-7242 to request a form by mail.
Before you call, please have your Social Security number, plan name and case number ready for the customer service representative.
For more information, see IRS Form 1099-R Frequently Asked Questions.
The beginning of a new year typically means the onset of new goals and perhaps the continuation of last year's resolutions. For many, saving more money might always be #1 or a close second on that list.
One source of this year's extra savings could be money from an unclaimed pension.
Across the country, there are more than 31,000 people who haven't claimed pension benefits they are owed. Those unclaimed pensions are now north of $280 million, with individual benefits ranging from 12 cents to almost $1 million.
The states with the most missing pension participants and money to be claimed are:
- New York (6,678/$40.33 million)
- Illinois (4,344/$85.36 million)
- California (2,966/$7.64 million)
- Texas (2,278/$10.68 million)
- New Jersey (2,114/$11.70 million)
- Ohio (1,908/$12.82 million)
PBGC works to ensure that people who get benefits from us receive them on time — by the first of the month. However, there's one time when that doesn't happen — the beginning of the year.
Typically, if the first of the month falls on a weekend or holiday, direct deposits will usually post before the first of the month. For this reason, June, September, and December 2013 direct deposits arrived before the first of the month. For tax purposes, January is the exception to this rule.
If payments arrived in December, it would result in a tax liability for 2013 instead of 2014. For this reason, your funds will be deposited on Jan. 2, 2014, one day after the New Year.
If you get a paper check (mailed on Dec. 27, 2013), and have not received it by January 7, please call us at 1-800-400-7242 or visit our Contact Us page for other options.
Want to receive future payments more quickly? Remember, PBGC offers direct deposit. It's the most secure and fastest way to receive your payment, and your funds are always available on payday — even if the weather's bad, the post office is closed, or you're out of town. The future electronic direct deposit dates are already mapped out.
To learn more or sign up for direct deposit, please visit MyPBA or call 1-800-400-7242.
On June 26, 2013, the Supreme Court ruled that Section 3 of the Defense of Marriage Act (DOMA) is unconstitutional.
Section 3 of the Defense of Marriage Act of 1966 defined "marriage" as a "legal union of one man and one woman as husband and wife" and a "spouse as "a person of the opposite sex who is a husband or a wife."
As a result, PBGC changed its policy to recognize same-sex marriages in our administration of benefits in terminated plans under the same rules applicable to opposite-sex marriages.
For a more detailed explanation of how PBGC recognizes marriage, please visit the "Benefits" section of our Workers & Retirees page.
The legislation that authorizes the Health Coverage Tax Credit (HCTC) expires January 1, 2014, and the tax credit will no longer be available.
Some key dates in this program's expiration were/are:
October 1: the HCTC Program will no longer accept new registration forms for individuals or qualified family members who wish to be enrolled into the monthly HCTC program
December 24: The final monthly HCTC payment due date
January 1: HCTC expires
PBGC has a HCTC webpage that details some additional information. The Internal Revenue Service (IRS) also has a webpage dedicated to periodic updates with important information affecting the HCTC program.