PBGC 2010 Limits Stay Level with 2009
A PBGC news release said the maximum benefit is indexed to the Social Security contribution and benefit base, which is likewise not changing in 2010. According to the agency, the 2010 maximum insurance limits still apply if a pension plan terminates in 2010 but a participant does not begin collecting benefits until a future year.
For plans that terminate while the plan sponsor is in bankruptcy proceedings, the Pension Protection Act of 2006 provides that the maximum benefit payable is determined by the legal limits in force on the date the plan sponsor filed for bankruptcy and not on the date of plan termination.
The PBGC pointed out it is prohibited from guaranteeing benefits greater than the amount payable at the plan’s normal retirement age. A second statutory limit caps PBGC’s guarantee of benefit increases made within the five years prior to plan termination, or the date the sponsor filed for bankruptcy, if the sponsor is in bankruptcy when the plan terminates.
Asserting “the overwhelming majority” of participants in plans it takes over do not have their accrued benefits limited, the agency said most such benefit reductions take place when participants earn much more than the maximum or when participants can enjoy generous early retirement subsidies.
More information about the PBGC benefit limits is available here .
Monthly Joint and
Age Annual Maximum Monthly Maximum 50% Survivor Maximum*
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75 $164,160.00 $13,680.00 $12,312.00
74 $149,256.00 $12,438.00 $11,194.20
73 $134,352.00 $11,196.00 $10,076.40
72 $119,448.00 $ 9,954.00 $ 8,958.60
71 $104,544.00 $ 8,712.00 $ 7,840.80
70 $ 89,640.00 $ 7,470.00 $ 6,723.00
69 $ 80,460.00 $ 6,705.00 $ 6,034.50
68 $ 72,360.00 $ 6,030.00 $ 5,427.00
67 $ 65,340.00 $ 5,445.00 $ 4,900.50
66 $ 59,400.00 $ 4,950.00 $ 4,455.00
65 $ 54,000.00 $ 4,500.00 $ 4,050.00
64 $ 50,220.00 $ 4,185.00 $ 3,766.50
63 $ 46,440.00 $ 3,870.00 $ 3,483.00
62 $ 42,660.00 $ 3,555.00 $ 3,199.50
61 $ 38,880.00 $ 3,240.00 $ 2,916.00
60 $ 35,100.00 $ 2,925.00 $ 2,632.50
59 $ 32,940.00 $ 2,745.00 $ 2,470.50
58 $ 30,780.00 $ 2,565.00 $ 2,308.50
57 $ 28,620.00 $ 2,385.00 $ 2,146.50
56 $ 26,460.00 $ 2,205.00 $ 1,984.50
55 $ 24,300.00 $ 2,025.00 $ 1,822.50
54 $ 23,220.00 $ 1,935.00 $ 1,741.50
53 $ 22,140.00 $ 1,845.00 $ 1,660.50
52 $ 21,060.00 $ 1,755.00 $ 1,579.50
51 $ 19,980.00 $ 1,665.00 $ 1,498.50
50 $ 18,900.00 $ 1,575.00 $ 1,417.50
49 $ 17,820.00 $ 1,485.00 $ 1,336.50
48 $ 16,740.00 $ 1,395.00 $ 1,255.50
47 $ 15,660.00 $ 1,305.00 $ 1,174.50
46 $ 14,580.00 $ 1,215.00 $ 1,093.50
45 $ 13,500.00 $ 1,125.00 $ 1,012.50
*Both spouses the same age.