Compliance April 12, 2002
PBGC Releases 2003 Maximum Guaranteed Benefits
December 4, 2002 (PLANSPONSOR.com) - The Pension
Benefit Guaranty Corporation (PBGC) has published a final
rule amending maximum guaranteeable benefits and the new
payment for participants of terminated single-employer
pension plans in 2003, according to Washington-based legal
publisher BNA.
Reported by Eric Hazard
Effective January 1, 2003, the maximum monthly and annual payments to participants starting to receive benefits from terminated single-employer plans in 2003 will be:
- Age 55 – $1,649.15 monthly; $19,789.80 annually
- Age 60 – $2,382.10 monthly; $28,585.20 annually
- Age 62 – $2,895.17 monthly; $34,742.04 annually
- Age 65 – $3,664.77 monthly; $43,977.24 annually
PBGC said the final rule is necessary because of annual changes to maximum guaranteed amounts based on changes to the contribution and benefit base under Section 230 of the Social Security Act.