PBGC LIMIT

[LIBERTYKID]

After an annuity commences to an alternate payee, does anyone know how the PBGC limits apply if the plan is terminated in a distress termination? Is the alternate payee's benefit combined with the particpant's benefit in determining the limit or do the limits apply separately?

[david rigby]

Not sure if this is definitive, but look at Q&A15 from 2005 BlueBook:

http://www.pbgc.gov/Documents/2005bluebook.pdf

"Similarly, an individual with respect to whom the plan has benefit liabilities and any alternate payees with respect to that individual would be counted as one participant."