[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR4011.11]
[Page 782-784]
TITLE 29--LABOR
CHAPTER XL--PENSION BENEFIT GUARANTY CORPORATION
PART 4011_DISCLOSURE TO PARTICIPANTS--Table of Contents
Sec. 4011.11 OMB control number.
The collections of information contained in this part have been
approved by the Office of Management and Budget under OMB control number
1212-0050.
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Appendix A to Part 4011--Model Participant Notice
The following is an example of a Participant Notice that satisfies
the requirements of Sec. 4011.10 when the required information is
filled in (subject to Sec. Sec. 4011.10(d)-(e), where applicable).
Notice to Participants of [Plan Name]
The law requires that you receive information on the funding level
of your defined benefit pension plan and the benefits guaranteed by the
Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency.
YOUR PLAN'S FUNDING
As of [DATE], your plan had [INSERT NOTICE FUNDING PERCENTAGE
(DETERMINED IN ACCORDANCE WITH Sec. 4011.10(c))] percent of the money
needed to pay benefits promised to employees and retirees.
To pay pension benefits, your employer is required to contribute
money to the pension plan over a period of years. A plan's funding
percentage does not take into consideration the financial strength of
the employer. Your employer, by law, must pay for all pension benefits,
but your benefits may be at risk if your employer faces a severe
financial crisis or is in bankruptcy.
[INCLUDE THE FOLLOWING PARAGRAPH ONLY IF, FOR ANY OF THE PREVIOUS
FIVE PLAN YEARS, THE PLAN HAS BEEN GRANTED AND HAS NOT FULLY REPAID A
FUNDING WAIVER.]
Your plan received a funding waiver for [LIST ANY OF THE FIVE
PREVIOUS PLAN YEARS FOR WHICH A FUNDING WAIVER WAS GRANTED AND HAS NOT
BEEN FULLY REPAID]. If a company is experiencing temporary financial
hardship, the Internal Revenue Service may grant a funding waiver that
permits the company to delay contributions that fund the pension plan.
[INCLUDE THE FOLLOWING WITH RESPECT TO ANY UNPAID OR LATE PAYMENT
THAT MUST BE DISCLOSED UNDER Sec. 4011.10(b)(6):]
Your plan was required to receive a payment from the employer on
[LIST APPLICABLE DUE DATE(S)]. That payment [has not been made] [was
made on [LIST APPLICABLE PAYMENT DATE(S)]].
PBGC GUARANTEES
When a pension plan ends without enough money to pay all benefits,
the PBGC steps in to pay pension benefits. The PBGC pays most people all
pension benefits, but some people may lose certain benefits that are not
guaranteed.
The PBGC pays pension benefits up to certain maximum limits.
The maximum guaranteed benefit is [INSERT FROM
TABLE IN APPENDIX B] per month or [INSERT FROM TABLE IN APPENDIX B] per
year for a 65-year-old person in a plan that terminates in [INSERT
APPLICABLE YEAR].
The maximum benefit may be reduced for an
individual who is younger than age 65. For example, it is [INSERT FROM
TABLE IN APPENDIX B] per month or [INSERT FROM TABLE IN APPENDIX B] per
year for an individual who starts receiving benefits at age 55. [IN LIEU
OF AGE 55, YOU MAY ADD OR SUBSTITUTE ANY AGE(S) RELEVANT UNDER THE PLAN.
FOR EXAMPLE, YOU MAY ADD OR SUBSTITUTE THE MAXIMUM BENEFIT FOR AGES 62
OR 60 FROM THE TABLE IN APPENDIX B. IF THE PLAN PROVIDES FOR NORMAL
RETIREMENT BEFORE AGE 65, YOU MUST INCLUDE THE NORMAL RETIREMENT AGE.]
[IF THE PLAN DOES NOT PROVIDE FOR COMMENCEMENT OF BENEFITS BEFORE
AGE 65, YOU MAY OMIT THIS PARAGRAPH.]
The maximum benefit will also be reduced when a
benefit is provided for a survivor.
The PBGC does not guarantee certain types of benefits.
[INCLUDE THE FOLLOWING GUARANTEE LIMITS THAT APPLY TO THE BENEFITS
AVAILABLE UNDER YOUR PLAN.]
The PBGC does not guarantee benefits for which
you do not have a vested right when a plan ends, usually because you
have not worked enough years for the company.
The PBGC does not guarantee benefits for which
you have not met all age, service, or other requirements at the time the
plan ends.
Benefit increases and new benefits that have been
in place for less than a year are not guaranteed. Those that have been
in place for less than 5 years are only partly guaranteed.
Early retirement payments that are greater than
payments at normal retirement age may not be guaranteed. For example, a
supplemental benefit that stops when you become eligible for Social
Security may not be guaranteed.
Benefits other than pension benefits, such as
health insurance, life insurance, death benefits, vacation pay, or
severance pay, are not guaranteed.
The PBGC generally does not pay lump sum
exceeding $5,000.
WHERE TO GET MORE INFORMATION
Your plan, [EIN-PN], is sponsored by [CONTRIBUTING SPONSOR(S)]. If
you would like more information about the funding of your plan, contact
[INSERT NAME, TITLE, BUSINESS ADDRESS AND PHONE NUMBER OF INDIVIDUAL OR
ENTITY].
For more information about the PBGC and the benefits it guarantees,
you may request
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a free copy of ``Your Guaranteed Pension'' by writing to Consumer
Information Center, Dept. YGP, Pueblo, Colorado 81009.
[THE FOLLOWING SENTENCE MAY BE INCLUDED:] ``Your Guaranteed
Pension'' is also available from the PBGC Homepage on the World Wide Web
at http://www.pbgc.gov.
Issued: [INSERT AT LEAST MONTH AND YEAR]
[61 FR 34026, July 1, 1996, as amended at 63 FR 38306, July 16, 1998; 65
FR 75165, Dec. 1, 2000]
Appendix B to Part 4011--Table of Maximum Guaranteed Benefits
--------------------------------------------------------------------------------------------------------------------------------------------------------
The maximum guaranteed benefit for an individual starting to receive benefits at the age
listed below is the amount (monthly or annual) listed below:
-----------------------------------------------------------------------------------------------
If a plan terminates in-- Age 65 Age 62 Age 60 Age 55
-----------------------------------------------------------------------------------------------
Monthly Annual Monthly Annual Monthly Annual Monthly Annual
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1995.................................................... $2,573.86 $30,886.32 $2,033.35 $24,400.20 $1,673.01 $20,076.12 $1,158.24 $13,898.88
1996.................................................... $2,642.05 $31,704.60 $2,087.22 $25,046.64 $1,717.33 $20,607.96 $1,188.92 $14,267.04
1997.................................................... $2,761.36 $33,136.32 $2,181.47 $26,177.64 $1,794.88 $21,538.56 $1,242.61 $14,911.32
1998.................................................... $2,880.68 $34,568.16 $2,275.74 $27,308.88 $1,872.44 $22,469.28 $1,296.31 $15,555.72
1999.................................................... $3,051.14 $36,613.68 $2,410.40 $28,924.80 $1,983.24 $23,798.88 $1,373.01 $16,476.12
2000.................................................... $3,221.59 $38,659.08 $2,545.06 $30,540.72 $2,094.03 $25,128.36 $1,449.72 $17,396.64
2001.................................................... $3,392.05 $40,704.60 $2,679.72 $32,156.64 $2,204.83 $26,457.96 $1,526.42 $18,317.04
2002.................................................... $3,579.55 $42,954.60 $2,827.84 $33,934.08 $2,326.71 $27,920.52 $1,610.80 $19,329.60
2003.................................................... $3,664.77 $43,977.24 $2,895.17 $34,742.04 $2,382.10 $28,585.20 $1,649.15 $19,789.80
2004.................................................... $3,698.86 $44,386.32 $2,922.10 $35,065.20 $2,404.26 $28,851.12 $1,664.49 $19,973.88
2005.................................................... $3,801.14 $45,613.68 $3,002.90 $36,034.80 $2,470.74 $29,648.88 $1,710.51 $20,526.12
--------------------------------------------------------------------------------------------------------------------------------------------------------
The maximum guaranteed benefit for an individual starting to receive
benefits at ages other than those listed above can be determined by
applying the PBGC's regulation on computation of maximum guaranteeable
benefits (29 CFR 4022.22).
[61 FR 34026, July 1, 1996, as amended at 61 FR 65474, Dec. 13, 1996; 62
FR 65608, Dec. 15, 1997; 63 FR 63179, Nov. 12, 1998; 64 FR 67164, Dec.
1, 1999; 65 FR 75165, Dec. 1, 2000; 66 FR 59693, Nov. 30, 2001; 67 FR
71471, Dec. 2, 2002; 68 FR 67033, Dec. 1, 2003; 69 FR 69821, Dec. 1,
2004]
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