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PBGC Letter

Posted: Fri Jan 06, 2012 2:29 pm
by blacklab
Just received a letter from Pension Benefit Guaranty Corporation advising me that they are now responsible for the pension plan of a former employer. The company (an insurer) went into receivership a couple of years ago. The letter said they will be contacting me further within a few months after their review.

I left the former company over 15 years ago, and anticipating financial difficulties opted to start receiving a defined benefit pension at a reduced amount of about 12K a year. I am hoping that this is well below limits at which the PBGC would cap someone's pension, but I don't know if there are other considerations I'm unaware of, such as salary I was making at the time, other?

(Ironically I just retired at end of last year and while a reduction to the 12k won't send me back to work it would still cause some re-evaluation of spending .

I'd appreciate any insights into what I might expect.

Re: PBGC Letter

Posted: Fri Jan 06, 2012 3:21 pm
by Steelersfan
This might help clear things up for you:

http://www.pbgc.gov/wr/benefits/guarant ... efits.html

Re: PBGC Letter

Posted: Fri Jan 06, 2012 5:56 pm
by blacklab
Thanks for the link, very helpful!
Looks like it should be fully covered, though they are a little vague about how it applies for early retirees (like myself).

Re: PBGC Letter

Posted: Fri Jan 06, 2012 9:47 pm
by Steelersfan
Here are some more comforting words:



Subject to limits set by Congress (discussed below), PBGC guarantees basic pension benefits. These include pension benefits at normal retirement age, most early retirement benefits, disability benefits, and annuity benefits for survivors of plan participants. PBGC provides pre-retirement survivor coverage, which pays a benefit to the spouse of a participant who dies before retirement.


http://www.pbgc.gov/res/factsheets/page/guar-facts.html

Re: PBGC Letter

Posted: Sat Jan 07, 2012 8:42 am
by TT
My pension was taken over by PBGC.
Here is a benefit of PBGC pension that some people are were not aware of:

http://www.irs.gov/individuals/article/ ... 48,00.html

Re: PBGC Letter

Posted: Sat Jan 07, 2012 9:08 am
by Carl53
TT wrote:My pension was taken over by PBGC.
Here is a benefit of PBGC pension that some people are were not aware of:

http://www.irs.gov/individuals/article/ ... 48,00.html
Thanks TT I did not know this.

I hope to never need this, but depending on how you look at it, it is a major benefit to those that receive it or a major hit to taxpayers.