The third legal limitation that will affect your benefits payable in your plan is the Phase-In Limitation.
The Phase-In rule limits PBGC's guarantee of benefit increases that were made within 5 years of the date your plan was terminated. PBGC will pay the greater of 20% of the increase or $20 per month for each full year the increase was in effect. For example, for a benefit increase made one year before DoPT, PBGC will calculate what 20% of the increase would be. We will then pay you whichever is greater - 20% of the increase or $20 - but not more than the actual increase.
There were some increases to the benefits in your plan within the 5 years before DoPT. For example, the benefit rates for the Part A Basic Benefit increased on October 1, 2004 for participants who retired after September 30, 2003.
October 1, 2004 was more than 4 years before the Date of Plan Termination, but less than 5 years before that date, so that increase was in effect for 4 full years before DoPT. That benefit increase, along with any other increases that occurred 4 full years before DoPT, are guaranteed up to the greater of 80% of the increase or $80 per month, but not more than the actual increase. There may also be additional items subject to the Phase-In Limitation that PBGC learns about as we continue to process your plan.