What Is the PBGC and What Does it Do?
Benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), if the Plan terminates. Generally, the PBGC guarantees most vested normal age retirement benefits, early retirement benefits and certain disability and survivor pensions. However, the PBGC does not guarantee all types of benefits under covered plans; and the amount of benefit protection is subject to certain limitations. The PBGC guarantees vested benefits at the level in effect on the date of plan termination. However, if benefits have been increased within five years before it terminates, the whole amount of the plan’s vested benefits or the benefit increase may not be guaranteed. In addition, there is a ceiling on the amount of monthly benefits the PBGC guarantees which is adjusted periodically. Currently, the PBGC’s maximum guarantee limit is $16.25 per month times a participant’s years of service. For more information on the PBGC insurance protection and its limitations, ask your Plan Administ
