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February 13, 2025
Question

Are PBGC payments for a failed TWA pension considered to be "federal government reitirement benefits?

  • February 13, 2025
  • 2 replies
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    2 replies

    SteamTrain
    Employee
    February 13, 2025

    No.  PBGC is just the backup for Private pension systems....and payments are not considered as Fed Govt Retirement benefits.

    ____________________________

    Federal Govt retirement benefits, refers to payments to people who actually worked for the US Govt. 

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    February 13, 2025

    In general, Pension Benefit Guaranty Corporation (PBGC) payments for a failed Trans World Airlines (TWA) pension aren't considered federal government retirement benefits. The PBGC is a federally established agency that insures private-sector pensions, not public sector or government employee pensions. 

     

    Federal government retirement benefits come from the Civil Service Retirement System (CSRS) or the Federal Employees' Retirement System (FERS). 

     

    For more information, check out the IRS Publication 721