What PBGC Guarantees
PBGC guarantees "basic benefits" earned before your plan’s termination date (or the date your employer’s bankruptcy proceeding began, if applicable), which include:
- Pension benefits at normal retirement age
- Most early retirement benefits
- Annuity benefits for survivors of plan participants
- Disability benefits (see exception below)
PBGC does not guarantee:
- Health and welfare benefits
- Vacation pay
- Severance benefits
- Lump-sum death benefits for a death that occurs after the date the plan ended
- Disability benefits for a disability that occurs after the plan’s termination date (or the date your employer’s bankruptcy proceeding began, if applicable)
Legal Limits on PBGC's guarantees
- Generally, PBGC does not guarantee any monthly pension amount that is greater than the monthly benefit your plan would have provided if you had retired at your normal retirement age.
- The maximum amount that PBGC guarantees is set each year under provisions of ERISA. For more information, see: Maximum monthly guarantee tables
- Higher limits may apply for people who met their plan’s requirements for a disability pension (whether they are receiving a disability pension or a non-disability pension) before the plan’s termination date. For more information, see “Guarantees for disabled participants.”
- PBGC may not fully guarantee your benefits if your plan was created or amended to increase benefits within five years before its termination date.
- If the plan terminated while your employer was in a bankruptcy proceeding that began on or after September 16, 2006, guarantees are determined as of the date your employer’s bankruptcy proceeding began.
- Additional limits may apply for certain airline industry plans.
For more information, see the General FAQs About PBGC. General FAQs About PBGC (PBGC.gov)