Case: old-age provision / incapacity pension (DDC)

Benefits & Executive Comp

July 16, 2021, 1:27 pm

Pension Benefit Guaranty Corp. has to reconsider a former grocer’s application for a disability pension because the PBGC misapplied the definition of “disability” in the employee’s pension plan at Penn Traffic Co., a federal court in Washington, DC. The agency had determined that the person had not received a Social Security disability allowance prior to the bankruptcy of his company and the adoption of his pension plan by the agency. However, the court said the retirement plan does not make disability benefit entitlement dependent on a determination by the Social Security Agency, and the plan’s definition of disability is different from that used by the SSA. And because …

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