Special Announcement for Retirees Receiving PBGC Payments Through Electronic Direct Deposit (EDD)
The Pension Benefit Guaranty Corporation pays pension benefits through Electronic Direct Deposits on the first day of every month. Normally, when the first falls on a weekend or holiday, PBGC will pay benefits on the last business day of the previous month. However, for income tax purposes, PBGC must make an exception for January 1, 2007.
The January 1, 2007, payment must be included in the 2007 tax year. Consequently, PBGC will delay its January payment until Tuesday, January 2, 2007.
Those retirees in PBGC-trusteed plans who have deductions taken directly from their checking accounts to pay bills should plan ahead to ensure they have sufficient funds available on January 1, 2007, to meet their obligations.