Will PBGC payouts be as big as I was counting on?
- What's a defined benefit plan?
- Can I decide how my money is invested?
- What's the difference between a defined benefit plan and a defined contribution plan?
- What happens when I retire?
- Exactly how much will I get when I retire?
- Am I eligible for a defined benefit plan?
- Just how common are defined benefit plans?
- What if I work for the government?
- What are the advantages of a defined benefit plan?
- What are the disadvantages of a defined benefit plan?
- Can I tap my money early?
- Can I count on the money to be there when I need it?
- Will PBGC payouts be as big as I was counting on?
- Is there insurance on government plans?
- How can I make sure my pension is covered by the PBGC?
Maybe not - and that's a major drawback. PBGC payouts have a maximum monthly limit. If your expected benefit was above that amount, you're out of luck. In 2008, the monthly max is $4,312.50 for a 65-year-old who is the only person receiving the benefit, and $3,881.25 if you take a so-called joint-and-survivor benefit that entitles you or your spouse to continue to receive the payment (at 50% of the original payout) when widowed. Anyone younger than 65 gets less than those amounts.
You can check out the sliding payout scale at the PBGC Web site.
