Bakery Drivers Local 734 - Health and Welfare Fund | Pension Benefit Guarantee
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Pension Benefit Guarantee

Pension Benefit Guarantee

Your pension benefits under this multiemployer plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. A multi -employer plan is a collectively bargained pension arrangement involving two or more unrelated employers, usually in a common industry.

Under the multi-employer plan program, the PBGC provides financial assistance through loans to plans that are insolvent. A multi-employer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due.

The maximum benefit that the PBGC guarantees is set by law. Under the multi-employer program, the PBGC guarantee equals a participant’s years of service multiplied by (1) 100% of the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC’s maximum guarantee limit is $35.75 per month times a participant’s years of service. For example, the maximum annual guarantee for a retiree with 30 years of service would be $12,870.

The PBGC guarantee generally covers:

  • Normal and early retirement benefits;
  • Disability benefits if you become disabled before the plan becomes insolvent; and
  • Certain benefits for your survivors.

The PBGC guarantee generally does not cover:

  • Benefits greater than the maximum guaranteed amount set by law;
  • Benefits increases and new benefits based on plan provisions that have been in place for fewer than five years at the earlier of:
    – The date the plan terminates; or
    – The time the plan becomes insolvent;
  • Benefits that are not vested because you have not worked long enough;
  • Benefits for which you have not met all of the requirements at the time the plan becomes insolvent; and
  • Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.

For more information about the PBGC and the benefits it guarantees, ask your plan administrator or contact:

PBGC’s Technical Assistance Division
1200 K Street N.W., Suite 930
Washington, D.C. 20005-4026

You may also call the PBGC at 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at 800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s website on the Internet at www.pbgc.gov.