Pension Benefit Guaranty Corporation: Workers and Retirees Experience Delays and Uncertainty When Underfunded Plans are Terminated

Download or read book Pension Benefit Guaranty Corporation: Workers and Retirees Experience Delays and Uncertainty When Underfunded Plans are Terminated written by Barbara D. Bovbjerg and published by DIANE Publishing. This book was released on 2010-11 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Under the single-employer insur. program, the Pension Benefit Guaranty Corp. (PBGC) may become the trustee of underfunded plans that are terminated and assume responsibility for paying benefits to participants as they become due, up to certain legal limits. From its inception in 1974 through the end of FY 2008, PBGC has terminated and trusteed 3,860 single-employer plans covering 1.2 million workers and retirees. Since 2008, the economic downturn has brought a new influx of pension plan terminations. This testimony describes: (1) PBGC's process for determining the amount of benefits to be paid; and (2) PBGC's recoupment process when the estimated benefit provided is too high and a retiree receives an overpayment that must be repaid.