Present Value of PBGC Maximum Guarantee for Limited Payment Rule

The PBGC releases the present value of maximum guarantee for purposes of funding limited payment rule.

Document Excerpt

Benefit Restrictions – Present Value of PBGC Maximum Guarantee: The Pension Protection Act of 2006 provides that, generally beginning in 2008, single-employer plans that are between 60 and 80 percent funded may not pay lump sums or other accelerated distribution forms with values in excess of: (1) 50 percent of the amount that would be paid absent the restriction or, if smaller (2) the present value of PBGC’s maximum guarantee computed under PBGC guidance. Technical Update 07-04 describes the methodology used to determine the present value of PBGC’s maximum guarantee and explains that a table will be posted for each calendar year. On November 23, 2009 PBGC posted the 2010 table. (11/25/09)

Link http://www.pbgc.gov/practitioners/whatsnew.html

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