Benefit guarantee

Discusses benefit guaranty and its limits for a retiree receiving monthly benefits from an ongoing plan.

PBGC did not guarantee benefits for a terminated plan, the termination of which was done in concert with the establishment of new retirement arrangements designed to provide substantially the same benefits.

Benefits which became vested solely on account of termination are not guaranteed.

Addresses ambiguities and how PBGC will resolve them in the application of the phase-in of guaranteed benefits.

Plans found not to be successor plans where there is a clear delineation of separate plans maintained by separate employers with the phase-in of guaranteed benefits beginning at the later of the adoption date or effective date of each plan.

Disability benefits guaranteed where participants satisfied plan conditions necessary to receive the benefit before the date of plan termination.

A death benefit is not a pension benefit and as such is treated as a liability before plan termination and must be deducted from the plan’s available assets.

Section 4044 asset allocation rules take precedence over any contrary plan provisions.

PBGC recognizes pension credits for discharged employees found to have been illegal discharged and reinstated for the period after the illegal discharge and ending with the date of plan termination.

Reaffirms PBGC’s prior review of its determination that a severance benefit provided by the plan is not a guaranteed benefit because it is not a benefit that is payable as an annuity or one or more payments related thereto.