[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: 29CFR4022.22]

[Page 776-777]
 
                             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. 4022.22  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

[[Page 777]]

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 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.