PBGC increases maximum benefit for retirees in failed pension plans
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The maximum benefit the Pension Benefit Guaranty Corp. will guarantee to participants who retire at 65 in plans that the agency takes over next year will be $60,136, a 1.7% increase over the 2014 maximum, the PBGC said Monday.
Changes in the maximum benefit guarantee are linked to wage inflation.
Only a small percentage of participants in failed pension plans taken over by the PBGC were entitled under their employment-based plans to benefits bigger than those guaranteed by the agency. A 2006 PBGC study found that 85% of participants in those plans received from the PBGC the full amount of the benefit they had earned from their former employer's pension plan.
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