Airline Plans and PBGC

[Guest jfreeborn]

Recently, a number of former airline pilots contacted us regarding the payment of their benefits by the PBGC. Typical situation is that the pilots began receiving benefits prior to the airline bankruptcy, selected a level income option, and were recently informed by PBGC that their benefits are being reduced because of the social security offset taking affect. When PBGC took over, the pilots pensions were significantly reduced b/c of the maximum PBGC payouts, but are now below PBGC's maximum level b/c of the reduction for the level income option they selected. Seems to me they should still be entitled to PBGC's maximum guarantee.

Anyone have any experience with the airline pensions or how PBGC administers level income payments?