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Pension Resource

29 C.F.R. § 4022.22

Maximum guaranteeable benefit.
CFR 2014 annual edition (revised as of 2014-07-01) · superseded Jul 1, 2015 · last amended by 76 FR 34602, June 14, 2011
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(a) In general. Subject to section 4022B of ERISA and part 4022B of this chapter, and except as provided in paragraph (b) of this section, benefits payable with respect to a participant under a plan shall be guaranteed only to the extent that such benefits do not exceed the actuarial value of a benefit in the form of a life annuity payable in monthly installments, commencing at age 65, equal to the lesser of—
(1) One-twelfth of the participant's average annual gross income from his employer during either his highest-paid five consecutive calendar years in which he was an active participant under the plan, or if he was not an active participant throughout the entire such period, the lesser number of calendar years within that period in which he was an active participant under the plan; or
(2) $750 multiplied by the fraction x/$13,200 where “x” is the Social Security contribution and benefit base determined under section 230 of the Social Security Act in effect at the termination date of the plan.
(b) PPA 2006 bankruptcy termination. In a PPA 2006 bankruptcy termination—
(1) The five-year period described in paragraph (a)(1) of this section shall not include any calendar years that end after the bankruptcy filing date.
(2) “Bankruptcy filing date” is substituted for “termination date of the plan” in paragraph (a)(2) of this section. Example: A contributing sponsor files a bankruptcy petition in 2007. The sponsor's plan terminates in a distress termination with a termination date in 2008. PBGC will compute participants' maximum guaranteeable benefits based on the amount determined under paragraph (a)(2) for 2007 ($4,125.00 as a straight-life annuity starting at age 65).
(c) Gross income. For purposes of paragraph (a)(1) of this section—
(1) Gross income means “earned income” as defined in section 911(d)(2) of the Code, determined without regard to any community property laws.
(2) If the plan is one to which more than one employer contributes, and during any calendar year the participant received gross income from more than one such contributing employer, then the amounts so received shall be aggregated in determining the participant's gross income for the calendar year.
Source credit, amendments & notes

[76 FR 34602, June 14, 2011]

29 C.F.R. § 4022.22 — Maximum guaranteeable benefit. · CFR 2014 annual edition (revised as of 2014-07-01) · https://pensionresource.website/EAMain?content=EAMain.Law&id=cfr29-4022.22&asof=2012-07-01 · printed Oct 16, 2026
On this page
  • (a) In general.
  • (b) PPA 2006 bankruptcy termination.
  • (c) Gross income.
Implements
ERISA § 4022 (29 U.S.C. § 1322) Single-employer plan benefits guaranteed
Cited by (code & regs)
Guidance addressing this section
PBGC
Final Rules
  • 79 FR 70090 Nov 25, 2014 — Title IV Treatment of Rollovers From Defined Contribution Plans to Defined Benefit Plans
Also cited in 4 other documents
PBGC
Final Rules
  • 79 FR 25667 May 6, 2014 — Benefits Payable in Terminated Single-Employer Plans; Limitations on Guaranteed Benefits; Shutdown and Similar Benefits
  • 76 FR 34590 Jun 14, 2011 — Bankruptcy Filing Date Treated as Plan Termination Date for Certain Purposes; Guaranteed Benefits; Allocation of Plan Assets; Pension Protection Act of 2006 (a)(1)(a)(2)(b)(b)(2)
Proposed Rules
  • 79 FR 18483Proposed Apr 2, 2014 — Title IV Treatment of Rollovers From Defined Contribution Plans To Defined Benefit Plans Comments due Jun 2, 2014
  • 76 FR 13304Proposed Mar 11, 2011 — Benefits Payable in Terminated Single-Employer Plans; Limitations on Guaranteed Benefits Comments due May 10, 2011

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Each row is a version of the text as published by the official source. Code dates are the edition/release point that first reflected the change; regulation dates are eCFR effective dates. The library checks the official sources automatically, so new versions appear here on their own; “run” opens the sync that recorded a version.

EffectiveThroughSourceAmended by
Jul 1, 1997Jun 30, 2011CFR 2010 annual edition (revised as of 2010-07-01) run 127View
Jul 1, 2011Jun 30, 2012CFR 2011 annual edition (revised as of 2011-07-01) run 127View · Redline (sign in)
Jul 1, 2012Jun 30, 2015CFR 2014 annual edition (revised as of 2014-07-01) run 12776 FR 34602, June 14, 2011View · Redline (sign in)
Jul 1, 2015currenteCFR editorial change effective 2017-01-01 run 279 FR 70095, Nov. 25, 2014View · Redline (sign in)
Provision-level history (blame)