Originally Posted by
kronan
PBGC doesn't guarantee a discounted rate. They provide a maximum benefit. Ranging roughly from 42k-65k (Age 60-65) You seem to be implying that in a market collapse the VB payout would go to 0...which isn't the case, expectations are a 2% floor for Pension benefits?
So if the PBGC guarantees the same payout for both plans doesn’t it follow that the PBGC “premiums” will be the same for both plans?