4022(c) Benefit (for Single-Employer Plans only)
For a PBGC-trusteed single-employer plan, a benefit payable by PBGC to a participant on account of PBGC's recoveries of unfunded benefit liabilities.
In most cases, PBGC asserts claims against the plan sponsor and other liable entities on behalf of the plan for unfunded benefit liabilities. These are amounts owed to participants, but are not funded by the plan's assets. A participant's ERISA section 4022(c) benefit depends on (1) the amount of PBGC's recoveries, (2) whether a participant has a nonguaranteed benefit, and (3) the priority categories process.
For plans with large underfunding amounts (that is, greater than $20 million of the plan's benefits are neither guaranteed nor funded by plan assets), the amount available for distribution under 4022(c) is based on PBGC's recoveries, if any, specific to the plan. For other plans, the amount available for distribution is based on a rolling five-year average of recoveries that includes all PBGC-trusteed plans.
This WikiMD article 4022(c) Benefit (for Single-Employer Plans only) is a stub. If you are familiar with the topic 4022(c) Benefit (for Single-Employer Plans only), you can help us. Paid editors welcome!