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.

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