Hahaha it's no wonder the Airline is getting clocked..I guess you guys are entitled to what you bargin for...Ka Ching
What do the other big six pay...?
15. If my accrued benefit is greater than the PBGC guarantee, is it possible that I could receive a benefit that is greater than the PBGC guarantee after a plan termination?
Following a termination of the Retirement Plan, the PBGC will protect your accrued benefit only up to the amount of the PBGC guarantee applicable to your age on the plan termination date or the date you commence your benefit, whichever is later. Whether you would receive more than the PBGC guarantee will depend on the funding level of the Retirement Plan as of the plan termination date. Only if the Retirement Plan is sufficiently funded to pay more than the PBGC guarantee will you receive a monthly benefit greater than the PBGC guarantee.
Example 1: Let's assume that a pilot has just early retired at age 57 with 25 years of service and final average earnings of $10,989, when the plan terminates. His monthly Retirement Plan benefit is $6,000. If this pilot commenced his benefits three years ago at age 54, it would be subject to a 21% reduction and it would not include the three years of benefit accruals. The benefit payable to this pilot at age 54 with 22 years of service would have been $4,584. (This assumes the pilot's final average earnings were unchanged at $10,989 as of March 31, 2000.) Therefore, his Priority Category 3 benefit (i.e., the benefit he would have been eligible for 3 years ago), is $4,584. The 2003 PBGC guarantee for age 57 is $1,942.33. If the Plan were sufficiently funded to pay all Priority Category 3 benefits, this retired pilot would receive a monthly benefit of $4,584. In that case, only if the Retirement Plan were sufficiently funded beyond Priority Category 4 would this pilot receive more than the $4,584 per month Priority Category 3 benefit.
Example 2: Assume an active pilot age 44 with 20 years of service has an accrued benefit of $6,500 per month, payable at age 60. Because this pilot was not eligible to retire three years prior to plan termination, he does not receive any benefit in Priority Category 3. When this pilot retires at age 60, his benefit under the Retirement Plan will be $2,382.10 per month, which is the PBGC guarantee for a participant commencing benefits at age 60. Only if the Retirement Plan is funded beyond Priority Category 4 would this pilot receive more than the $2,382.10 per month Priority Category 4 benefit.
In addition to paying guaranteed benefits or the funded Priority Category 3 benefits, ERISA requires the PBGC to share a portion of its recoveries from US Airways with participants by paying a portion of the non-guaranteed benefits. Therefore, participants whose benefits exceed the PBGC guarantee may receive a portion of those non-guaranteed benefits in addition to the guaranteed amount, but only if the PBGC receives any recoveries from US Airways.