[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4022.22]

[Page 716-717]
 
                             TITLE 29--LABOR
 
                          GUARANTY CORPORATION
 
PART 4022--BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS--Table of Contents
 
              Subpart B--Limitations on Guaranteed Benefits
 
Sec. 4022.22  Maximum guaranteeable benefit.

    Subject to section 4022B of ERISA and part 4022B of this chapter, 
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 the 
amounts computed in paragraphs (a) and (b) of this section.
    (a) 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

[[Page 717]]

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.
    (1) As used in this paragraph, ``gross income'' means ``earned 
income'' as defined in section 911(b) of the Code, determined without 
regard to any community property laws.
    (2) For the purposes of this paragraph, 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.
    (b) $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.