Skip to main content

This page has not been translated. Please go to's Spanish home page for more information available in Spanish.

Esta página no ha sido traducida. Por favor vaya a la página principal del sitio de español de PBGC para ver información disponible en español.

Your PBGC Benefit Options

PBGC offers several benefit options to any participant who receives his or her first benefit payment on or after May 1, 2002. The following are answers to questions about benefit choices currently available to participants who are not yet retired.

You may elect to receive your benefits in one of the following ways:

  • a straight-life annuity that provides you with fixed monthly benefit payments for your lifetime. No survivor benefit will be paid after your death.
  • a 5-year, 10-year or 15-year certain-and-continuous annuity that provides you with fixed monthly benefit payments for your lifetime. If you elect this type of life annuity and die before the end of the 5-, 10- or 15-year time period you selected, your designated beneficiary will receive the same monthly benefit for the remainder of the period. If you die after the end of the period, benefit payments end upon your death. Note that the 5-, 10- or 15-year period starts when your benefit payments start, not when you die.
  • a joint-and-survivor annuity that provides you with fixed monthly benefit payments for your lifetime and, upon your death, continues payments to your spouse or other beneficiary for the rest of his or her life. The monthly benefit your spouse or other beneficiary receives is 50, 75 or 100 percent - depending on your choice - of the amount you were receiving while you were alive. If your beneficiary dies before you, your monthly benefit will not change.
  • a joint-and-50% survivor "pop-up" annuity that differs from the joint-and-survivor annuity described above in that, if your spouse or other beneficiary dies before you, your monthly benefit "pops-up" to the straight-life annuity amount for the rest of your life.
  • the "automatic" form of benefit offered to you under your plan.

If you are married when your benefit payments begin, your spouse must provide written consent for you to elect any form of benefit other than the automatic form your plan would pay to a married participant.

Our publication Your Benefit, Your Choice provides more information about your benefit options.

You may choose to receive your benefit in one lump sum only if:

  • Your plan terminated before 2024 and the value of your benefit is no more than $5,000, or
  • Your plan terminates in 2024 or later and the value of your benefit is no more than $7,000.

If you are eligible for and select a lump sum, you generally can put all or part of your lump sum into a traditional Individual Retirement Arrangement (IRA) or other qualified plan. If you have PBGC pay the lump sum directly to your IRA or other plan, PBGC will not withhold tax from the payment. With this type of payment, called a "tax-free rollover," you will not have to pay tax until you receive payments from the IRA or other plan. You can get more information about tax-free rollovers by contacting your local Internal Revenue Service office, calling 1-800-TAX-FORM, or visiting the IRS website.

Congress set up PBGC to insure the benefits of private-sector pension plans, and we pay benefits according to the rules of those plans. In most pension plans, generally the longer you wait to start receiving benefits, the larger the benefit will be. But there is no fixed formula that applies to all PBGC benefit recipients as there is for Social Security recipients.

You must begin receiving your benefits no later than your required beginning date.  Generally, under IRS and PBGC rules, the required beginning date for a plan participant is April 1 of the calendar year following the later of:

  • The calendar year in which the participant attains age 72 (age 70½ for a participant who attained age 70½ before January 1, 2020), and
  • The calendar year in which the participant terminates employment.

Different rules apply for payments to participants who are employed by the plan sponsor at the plan termination date, to participants who are 5% owners, to beneficiaries of participants who die before their required beginning date, and to alternate payees under QDROs.

You select the form of annuity you want at the time you file your application to begin receiving your pension benefits. PBGC must receive your application no more than 90 days before the date you requested that your benefits begin. You may change your selection by filing a new application before the date of your first payment. After the date of your first payment, you cannot change your selection.

Yes. These options are available for all participants who apply to PBGC to start receiving their benefits on or after May 1, 2002.

If you are married, you may name a person who is not your spouse as your beneficiary; however, to do so, you will need the written consent of your spouse on your PBGC application for benefits.

If you are not married, you may name a beneficiary to receive survivor benefits under any optional joint-and-survivor or certain-and-continuous annuity form.

If you remarry after you have started receiving your PBGC benefits, you may transfer survivor benefits to your new spouse if you have a certain-and-continuous annuity. For all other benefit forms, your survivor benefits remain assigned to the person you designated when you started benefits.

If you are divorced or legally separated, your pension may be affected by a qualified domestic relations order (QDRO). For more information, see Qualified Domestic Relations Orders and PBGC.

In the case of a joint-and-survivor annuity, you may designate only one person. For certain-and-continuous annuities, your beneficiary may be one or more persons, an estate, a trust, or an organization.

If you choose a joint-and-survivor annuity, you cannot change your beneficiary after your benefit starts. If you choose a certain-and-continuous annuity, you may change your designated beneficiary at any time.

The answer depends on the benefit form you elected:

  • If you elected a joint-and-survivor annuity and your beneficiary dies while you are receiving your benefit, your monthly benefit will continue unchanged and no survivor benefits will be payable upon your death.
  • If you elected the joint-and-50% survivor "pop-up" annuity and your beneficiary dies while you are receiving your benefit, your benefit will increase to the straight-life annuity amount.
  • If you elected a certain-and-continuous annuity, you may name a new beneficiary after the death of your original beneficiary. If you have not designated a new beneficiary and you die before the end of the certain period you selected, then your benefit will be paid in this order: your spouse, your children, your parents, your estate, and your next of kin.

Your monthly benefit will stay the same unless you elect the joint-and-50% survivor "pop-up" annuity. With the joint-and-50% survivor pop-up annuity, your monthly benefit will "pop-up" to the straight-life annuity amount if your beneficiary dies before you.

If your pension plan terminated on or after August 23, 1984, and you are married at the time of your death, PBGC generally will pay your spouse a benefit. We will determine what your benefit would have been at your death (or your earliest retirement age, if later) and pay your spouse a benefit as though you had retired with a joint-and-survivor annuity just before you died. If you are not married when you die, or if your plan terminated before August 23, 1984, generally there will be no benefit payable to a beneficiary.

This question is complex; this could be one of the most important financial decisions you will ever make. Your decision affects the amount of your monthly benefit and how much (if anything) your beneficiary will receive after your death. The best option for you depends on your age, health, and other financial resources, as well as the age, health, and financial needs of anyone for whom you wish to provide a benefit. If you are married, you should discuss this choice with your spouse. You may also want to discuss this choice with other family members or friends or, possibly, a financial advisor.

Call PBGC's Customer Service Center toll-free at 1-800-400-7242 and request a benefit application package. (TTY/ASCII users may call 711.) PBGC will send you the application and the exact benefit calculations to show the amount of your benefit under all of your annuity form options. If you are married, the calculations will also show the amount of your spouse's benefit.

There is no “account balance” for defined benefit or traditional pension plans. Unlike defined contribution pension plans, such as 401(k) plans, which have a balance that can be spent down and outlived, your defined benefit plan with PBGC promises a specific payment over time, typically a monthly benefit for life. Calculating the amount of that benefit is a complex process, using the benefit formula and the assets of your pension plan subject to legal limits on PBGC’s guarantee.

PBGC tries to make accurate benefit payments, but sometimes we do make overpayments.

PBGC has two different methods of collecting overpayments, recoupment and recovery, depending on whether you are owed future benefits. PBGC will notify you in writing of the amount of the overpayment and the method for collection.

If you are owed future PBGC payments, we will collect your overpayment by deducting a small percentage from your monthly payment. This collection process is called recoupment. Recoupment will continue until the overpayment has been repaid, or until the benefit ends.

If you are not owed any future benefits from PBGC, we will ask you to repay the overpayment in a one-time payment. This collection process is called recovery. PBGC will tell you in writing how much you owe and how to repay the overpayment. We will also inform you of your rights regarding collection of your overpayment.

Overpayments subject to recovery occur, for example, when:

  • A person not entitled to a benefit, such as a relative, receives payments after a payee’s death.
  • A person who was not vested in their plan benefit receives benefit payments in error.
  • A person receives payments because of an administrative error; for example, when payments continue after the benefit should have stopped.

When we contact you to collect the overpayment, we will inform you of your right to request a waiver of repayment. If you request a waiver, you will have to provide documented evidence that repaying the debt would cause you serious financial hardship.

You have the right at any time to inspect and copy records concerning your debt and to ask us how we calculated the amount you owe. Your request must be in writing and may be submitted in any of the following ways:


You have two options for making full repayment to PBGC for overpayments subject to recovery. The preferred option is to send the total overpayment amount electronically via, a government website where you can make secure payments directly to many federal agencies, including PBGC. You may also make payments by check or money order.

To summarize your payment options:

  • Electronic Payment via Go to On the “Find an Agency” list, select Pension Benefit Guaranty Corporation and then select “Pension Benefit Guaranty Corporation Repayment of Benefit Overpayment -PBGC (last tile). You will be prompted to a form where you enter the PBGC Customer ID and Customer Name of the pension participant.
  • Paper Check or Money Order: You may mail a paper check or money order to our Benefits Administration & Payment Department lockbox.

    PBGC has two mailing addresses, one for US Postal Service deliveries, the other for private delivery services. Please be sure to send your check or money order and the remittance advice to the address that applies to you:
United States Postal Service Delivery (FedEx, UPS, etc.)
Benefits Administration & Payment Department
P.O Box 790374
St. Louis, MO 63179
U.S. Bank
Box 790374
3180 Rider Trail S.
Earth City, MO 63045

When you pay by check, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.

Privacy Act

A Privacy Act Statement required by 5 U.S.C. § 552a(e)(3), stating our authority for soliciting and collecting the information from your check, and explaining the purposes and routine uses which will be made of your check information, is available online, or call toll free at (1-866-945-7920) to obtain a copy by mail. Furnishing the check information is voluntary, but a decision not to do so may require you to make payment by some other method.

No. PBGC does not allow a representative to manage a PBGC payee’s benefit by becoming the named payee of the benefit. However, a PBGC payee can designate a relative or trusted friend to act as agent to take specific actions relating to their pension benefit. For more information, see Designate a Power of Attorney.

For information about the Social Security Administration’s representative payee program, see Social Security - Representative Payee Program.

Last Updated: