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What defined benefit plan benefits are covered by the Pension Benefit Guaranty Corporation insurance program?

Only vested benefits are insured. Any benefit which has been earned but not yet vested is not covered. Moreover, a maximum pension benefit is provided - inflation indexed by reference to the Social Security contribution and benefit formula - which is actuarially reduced if the benefit begins before a participant's age 65. In short, a plan participant whose monthly benefit exceeds the limitation remains at risk for the excess when the plan defaults and the employer is insolvent.





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