[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4022.21]

[Page 776]
 
                             TITLE 29--LABOR
 
            CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
 
PART 4022_BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS
--Table of Contents
 
              Subpart B_Limitations on Guaranteed Benefits
 
Sec. 4022.21  Limitations; in general.


    (a)(1) Subject to paragraphs (b), (c) and (d) of this section, the 
PBGC will not guarantee that part of an installment payment that exceeds 
the dollar amount payable as a straight life annuity commencing at 
normal retirement age, or thereafter, to which a participant would have 
been entitled under the provisions of the plan in effect on the 
termination date, on the basis of his credited service to such date. If 
the plan does not provide a straight life annuity either as its normal 
form of retirement benefit or as an option to the normal form, the PBGC 
will for purposes of this paragraph convert the plan's normal form 
benefit to a straight life annuity of equal actuarial value as 
determined by the PBGC.
    (2) The limitation of paragraph (a)(1) of this section shall not 
apply to:
    (i) A survivor's benefit payable as an annuity on account of the 
death of a participant that occurred on or before the plan's termination 
date and before the participant retired;
    (ii) A disability pension described in Sec. 4022.6 of this part; or
    (iii) A benefit payable in non-level installments that in 
combination with Social Security, Railroad Retirement, or workman's 
compensation benefits yields a substantially level income if the 
projected income from the plan benefit over the expected life of the 
recipient does not exceed the value of the straight life annuity 
described in paragraph (a)(1) of this section.
    (b) The PBGC will not guarantee the payment of that part of any 
benefit that exceeds the limitations in section 4022(b) of ERISA and 
this subpart B.
    (c)(1) Except as provided in paragraph (c)(2) of this section, the 
PBGC does not guarantee a benefit payable in a single installment (or 
substantially so) upon the death of a participant or his surviving 
beneficiary unless that benefit is substantially derived from a 
reduction in the pension benefit payable to the participant or surviving 
beneficiary.
    (2) Paragraphs (a) and (c)(1) of this section do not apply to that 
portion of accumulated mandatory employee contributions payable under a 
plan upon the death of a participant, and such a benefit is a pension 
benefit for purposes of this part.
    (d) The PBGC will not guarantee a joint-life annuity benefit payable 
to other than--
    (1) Natural persons; or
    (2) A trust or estate for the benefit of one or more natural 
persons.

[61 FR 34028, July 1, 1996, as amended at 67 FR 16956, Apr. 8, 2002]