PBGC Max Monthly Guarantee Tables

[PhatSappy]

FYI

Maximum Monthly Guarantee Tables

http://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee.html#2011

Examples of the maximum guarantee are shown in the tables below. Each table applies to a given calendar year. The maximum guarantee is set by law and it is updated each calendar year. The maximum guarantee applicable to a plan is fixed as of that plan's termination date except where termination occurs during a plan sponsor's bankruptcy and the sponsor entered bankruptcy on or after September 16, 2006, in which case the maximum guarantee is fixed as of the date the sponsor entered bankruptcy.

Your maximum guaranteed amount is based, in part, on your age on the plan termination date (or the date the sponsor entered bankruptcy, if applicable) or, if you were not in pay status on that date, the date you begin receiving benefits from PBGC. Your maximum guaranteed amount also will reflect the age of your designated beneficiary if your benefit provides payments to a survivor. The age reduction does not apply for certain disabled participants (see Guarantees for Disabled Participants). The tables show the maximum guarantee, by age, for a participant receiving a straight-life annuity (one with no survivor benefits) and for one who receives a joint and 50% survivor annuity. In calculating the joint and 50% survivor amounts, the participant and survivor were assumed to be the same age. (For more information, see the PBGC news release PBGC Announces Maximum Insurance Benefit for 2010.)

FOR PLANS TERMINATING IN A GIVEN YEAR (SEE TABLES, CLICK HERE).

 

[Deleted member 14439]

We were looking @ these tables this week. A question arose that we have not come to a concensus on. The tables start @ age 45. Is this the max @ that age on the date the PBGC takes over? If so, those under 45 just lose everything they have earned to date? I`m researching but no clear anwser yet. Any thoughts,comment from those that have been to this circus before?

 

[Buck]

Replying to the Poll:

How can the TWU file a lien on an aircraft the company does not own?

I believe you are referring to a mechanics lein? At TUL, OT is increasing in some areas to meet some of the shedding of the leases. I understand that JT-8, is working 7/16's in attempt to reengine the MD-80's to meet the lease requirements and they may not have enough full engine at this time to meet that demand. This is hearsay of course.

Why would the TWU even consider such a move when the company has not made any overt moves to limit or outsource work?

 

[FWAAA]

We were looking @ these tables this week. A question arose that we have not come to a concensus on. The tables start @ age 45. Is this the max @ that age on the date the PBGC takes over? If so, those under 45 just lose everything they have earned to date? I`m researching but no clear anwser yet. Any thoughts,comment from those that have been to this circus before?

No, the tables only go as low as 45 because very few places would allow you to retire at less than 45 and get any benefits until you reached 55 or 60 or 65 To figure if your monthly pension payment is below the max, you look at your age on the table if you're already receiving a retirement check or if you're not yet retired, the age at which you will retire. If you are younger than 45 when the plan is terminated, you have nothing to worry about because whatever meager check you would get at 60 or 65 is surely going to be smaller than the age 60 or 65 number. Since plan termination will halt the accrual of additional benefits, a 44 year old will probably get a couple hundred dollars a month when they turn 60 or 65, well under the PBGC max.

About the poll: The automatic stay of bankruptcy forbids any collection activity, including the placing of liens. Too late for that - if you wanted a lien, you should have done it before Nov 29.

 

[Kellerguy]

Perhaps I am missing something, but AA retirement plan allow for full retirement at age 60, so for those that retired pre 65 it looks like some significant haircuts...for everyone that does not wait until 65. I did't see anything regarding companies with age 60 retirement. Let's hope the AA plans are frozen and not terminated.

 

[Buck]

Perhaps I am missing something, but AA retirement plan allow for full retirement at age 60, so for those that retired pre 65 it looks like some significant haircuts...for everyone that does not wait until 65. I did't see anything regarding companies with age 60 retirement. Let's hope the AA plans are frozen and not terminated.

I heard from a shop steward in TUL that their financial guy, has stated that if the company has a, age 60 plan at this time that the PBGC will honor it. Bew assured that you need to keep in tuch on this issue with your local. The same steward advised me and others to go to the Benefit retirement calculator and in the first date block put 12/02/2011 and in the second put the date when you attain age 60, perform the calculation and print it and take home for safe keeping. Most likely the company will habd over the pesion to the PBGC on the date of the BK filing.

 

[FWAAA]

Perhaps I am missing something, but AA retirement plan allow for full retirement at age 60, so for those that retired pre 65 it looks like some significant haircuts...for everyone that does not wait until 65. I did't see anything regarding companies with age 60 retirement. Let's hope the AA plans are frozen and not terminated.

If you've already retired at age 60, then yes, your pension payment might exceed the maximum, and you'll get a haircut. That's what happened to all those pilots at the other airlines who were forced by law to retire at 60 (before the law changed). Their monthly checks were slashed and pilots who were close to retirement saw their earned retirement amounts slashed.

If you aren't yet 60 and have not yet retired, your pension will be smaller than you expected because a termination will treat you as having quit the day of the termination, and if you quit before reaching retirement age, your pension will always be significantly smaller than if you had worked to retirement age.

 

[Buck]

If you've already retired at age 60, then yes, your pension payment might exceed the maximum, and you'll get a haircut. That's what happened to all those pilots at the other airlines who were forced by law to retire at 60 (before the law changed). Their monthly checks were slashed and pilots who were close to retirement saw their earned retirement amounts slashed.

If you aren't yet 60 and have not yet retired, your pension will be smaller than you expected because a termination will treat you as having quit the day of the termination, and if you quit before reaching retirement age, your pension will always be significantly smaller than if you had worked to retirement age.

Is the PBGC wage maximum based on income?

If so, then at what point does a pilot for example take a hit?

 

[Kellerguy]

If you've already retired at age 60, then yes, your pension payment might exceed the maximum, and you'll get a haircut. That's what happened to all those pilots at the other airlines who were forced by law to retire at 60 (before the law changed). Their monthly checks were slashed and pilots who were close to retirement saw their earned retirement amounts slashed.

If you aren't yet 60 and have not yet retired, your pension will be smaller than you expected because a termination will treat you as having quit the day of the termination, and if you quit before reaching retirement age, your pension will always be significantly smaller than if you had worked to retirement age.

There is more of a haircut than that, according to those tables they reduce the amount by 7% each year you retire early.

 

[Kellerguy]

Is the PBGC wage maximum based on income?

If so, then at what point does a pilot for example take a hit?

Not on income, on pension plan payout. Of course the payout uses income in its calculations.

 

[Buck]

There is more of a haircut than that, according to those tables they reduce the amount by 7% each year you retire early.

Would there likely be a Social Security increase at the same time? <_<

 

[Kellerguy]

Would there likely be a Social Security increase at the same time? <_<

SS is independent of this pension plan insurance. The only way it is ever involved in the calculations is if you choose a payout that is EVEN LEVEL to 62 or 66, where it uses the current SS rates. Future SS increases or as congress may end up doing--decreases have no bearing on the PGNC or AA Retirement Plan, whichever survives.

 

[DNTULSA]

I retired in 2002, at the age of 60. Will my retirement amount change if the PBGC takes over AA's retirement?

Thanks in advance.

 

[xUT]

"IF" AA throws the pension to the PBGC, those that have already retired shouldn't be effected.
Everyone will get their 'book rate' retirement from the PBGC as defined by their contract to PBGC defined maximums.
IMHO, if AA dumps pensions on the PBGC, consider them 'frozen' in time (at the behest of the PBGC).
Some contracts allow an early retirement at age 45 up to 60ish, depends on your contract.

Your contract decides your retirement benefits, your contract retirement stipulations are also frozen on the date when given to the PBGC.

If you are allowed early retirement at 55 with a reduced book rate (as determined by your contract) and are still working for AA, you will get the same retirement from the PBGC.

M&R doesn't have to worry about exceeding PBGC maximums for retirement.

B) xUT

 

[xUT]

FYI,

http://www.pbgc.gov/

Check it out and get informed.

B) xUT