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If your terminated plan is a defined benefit plan insured by the Pension Benefit Guaranty Corporation, the PBGC will guarantee the payment of your vested pension benefits up to the limits set by law. Benefits that are guaranteed or that exceed PBGC’s limits may be paid depending on the plan’s funding and on whether PBGC is able to recover additional amounts from the employer. For further information on plan termination guarantees, write to the Pension Benefit Guaranty Corporation, Administrative Review and Technical Assistance Department, 1200 K Street, N.W., Washington, D.C. 20005, telephone 202.326.4000.

If a plan terminates and the plan purchases annuity contracts from an insurance company to pay benefits in the future, plan fiduciaries must take certain steps to select the safest available annuity. Thus, in accordance with Department of Labor guidance, the plan must conduct a thorough search with respect to the financial soundness of insurance companies that provide annuities, to better assure the future payment of benefits to participants and beneficiaries.

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