PBGC maximum benefit guarantee to rise in 2013
Posted On: Nov. 27, 2012 12:00 AM CST
The maximum benefit the Pension Benefit Guaranty Corp. will guarantee to participants who retire at age 65 and are in plans that the agency takes over in 2013 will be $57,477.24, up from $55,840.92 this year, the PBGC announced Tuesday.
Changes in the maximum benefit guarantee are linked to wage inflation.
In fiscal 2012, the PBGC paid nearly $5.5 billion to 887,000 participants in plans taken over by the agency.
This month, the PBGC reported a record $34 billion deficit, up from $26.1 billion in fiscal 2011, in its insurance programs.
The programs are funded by premiums paid by employers with defined benefit plans and by investment income earned on assets in failed plans that the agency has taken over.