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URL:  https://boards.fool.com/the-web-site-says-that-if-you-retire-at-age-65-no-17041652.aspx

Subject:  Re: PENSION - BANKRUPTCY Date:  4/10/2002  5:42 PM
Author:  jrr7 Number:  34150 of 95637

The web site says that if you retire at age 65, no survivorship option, and your pension is under the limit, then it is guaranteed 100%. If you retire early, your benefit is less. I do not know if the PBGC uses the same reduction schedule for early retirement that your company would use if it were healthy.

Let's see if I can explain using a hypothetical example..

Joe is the CEO of a company. His defined pension benefit is $100,000 a year. The company goes broke right when Joe is age 65. His pension is guaranteed by the PBGC...to a point.

You see, the maximum pension payout the PBGC pays out is $47,000 per person. So since Joe's pension was too high for the PBGC to insure it fully, Joe ends up only getting 47% of what he thought he was getting. That 47% number is not written in stone anywhere; it's only because of the ratio of Joe's entitled pension benefit to what the PBGC can pay.

Someone with a defined benefit of $1900 per month, age 65, would be paid in full by the PBGC. However, if the person is younger than 65, their amount may vary. You need to contact them with your age and find out what is the maximum monthly payment they would make to you.
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