TAX 9873 Lecture Notes - Lecture 16: Pension, Life Annuity, Employee Retirement Income Security Act
Document Summary
Pbgc will determine whether the plan satisfies the financial distress tests: A demonstration indicating the company cannot continue business unless the plan is termination, or. A demonstration indicating the costs of providing benefits have become unreasonably burdensome. The law provides that pbgc may terminate a pension plan, even if a company has not filed to terminate a plan on its own initiative. Eligibility for benefits from pbgc: normal retirement date. A participant who is not yet receiving payments from a terminated plan can begin receiving benefits at the plan"s. Established as of the plan termination date or the bankruptcy filing date. Maximum single life annuity is ,136 at age 65. Pbgc does not guarantee pmts that exceed the amount payable at normal retirement age. This is why pbgc cannot guarantee most early retirement supplements. Some benefits and benefit increases only receive partial (phased in) protection.
