PBGC Announces Maximum Guarantee for the Year 2001
FOR IMMEDIATE RELEASE
November 09, 2000
he Pension Benefit Guaranty Corporation (PBGC) today announced that the maximum benefit it will guarantee for retirees in underfunded single-employer defined benefit plans that terminate in the year 2001 will be $3,392.05 per month, or $40,704.60 per year.
The Employee Retirement Income Security Act of 1974 (ERISA) mandates that the maximum guaranteed amount be adjusted annually based on changes in the Social Security contribution and wage base.
The maximum guarantee shown here applies to retirees at age 65. Maximum guarantees are adjusted for retirees at other ages or those who elect survivor benefits. In some instances, where a pension plan has adequate resources or PBGC recovers sufficient amounts, a participant may receive benefits in excess of the maximum guarantee.
About 532,000 workers and retirees in over 2,700 pension plans rely on PBGC for their retirement income.
The maximum monthly guaranteed amounts for plans terminating each year for the past ten years are:
Maximum Monthly Guaranteed Amounts for Plans Terminating Each Year From 1992 - 2001
|Year of Plan|
The PBGC will publish the 2001 maximum guarantee in the December 1, 2000, Federal Register.
PBGC is a federal corporation created under ERISA to guarantee payment of basic pension benefits earned by about 43 million American workers and retirees participating in more than 40,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
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PBGC No. 01-05