Compliance February 11, 2002
PBGC Posts Pension Maximum for 2002
November 14, 2001 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) has announced that the
maximum benefit it will guarantee for retirees in
underfunded, single-employer defined benefit plans that
terminate in the year 2002 will be $3,579.55 per month, or
$42,954.60 per year.
Reported by editors@plansponsor.com
That’s higher than the $3,392.05 per month, or $40,704.60 annually, provided in 2001.
The Employee Retirement Income Security Act of 1974 (ERISA) requires that the maximum guaranteed amount be adjusted annually based on changes in the Social Security contribution and benefit base.
About 541,000 workers and retirees in nearly 2,900 pension plans rely on PBGC for their retirement income.
– Nevin Adams editors@plansponsor.com
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