When can I collect my PBGC pension?

You will start to receive payments about three months after you contact PBGC about your pension benefits. For example, if you contact us during January, the soonest your benefit can start is April 1.

Are PBGC pensions for life?

Unlike defined contribution pension plans, such as 401(k) plans, which have a balance that can be spent down and outlived, your defined benefit plan with PBGC promises a specific payment over time, typically a monthly benefit for life.

What is the maximum PBGC benefit?

An earlier date may apply to certain airline industry plans. For 2019, the maximum guaranteed amount is $5,607.95 per month ($67,295.40 per year) for workers who begin receiving payments from PBGC at age 65.

Can you receive pension and still work?

Your pension plan benefits are not dependent on your work status. You receive these benefits when you retire, but you’re allowed to continue working for another employer. You must, though, retire from the employer that you are receiving pension benefits from.

What happens to your pension if your PBGC plan ends?

If your plan ends (this is called “plan termination”) without sufficient money to pay all benefits, PBGC’s insurance program will pay you the benefit provided by your pension plan up to the limits set by law. (Most people receive the full benefit they had earned before the plan terminated.)

What kind of benefits are covered by the PBGC?

The basic benefits that are covered by the PBGC consist of a pension upon achieving retirement age, most early retirement benefits, annuities for survivors of plan participants, and disability payments for those receiving such payments before the covered plan terminates. 2 

When is the maximum guarantee for PBGC higher?

The maximum guarantee is lower if you begin receiving payments from PBGC before age 65 or if your pension includes benefits for a surviving spouse or other beneficiary. The maximum guarantee is higher if you are over age 65 when you begin receiving benefits from PBGC.

Is the PBGC part of the federal government?

The PBGC is a federal government agency created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 30,000 private-sector defined benefit pension plans.