Ask the Experts: Collecting Pension From a Bankrupt Company

Q. My company went bankrupt this year and my pension plan was terminated. I was told I’ll be getting my pension payout from the government. What’s the most I can collect?

A. Single retirees age 65 whose pension plans terminated in 2009 could collect $54,000 per year—the maximum benefit paid out by the Pension Benefit Guaranty Corp. That’s up from $51,750 in 2008.

The maximum benefit is lower for younger retirees—$18,900 annually for a 50-year-old. Those limits are set by law.

Source: Pension Benefit Guaranty Corporation