By Pension and Benefits Editorial Staff
The Pension Benefit Guaranty Corporation (PBGC) has issued a table of the maximum monthly guarantee limits showing the 2021 monthly maximum benefit guarantees for retirees from age 75 to 45. According to the PBGC, the guarantee limits for single-employer plans that fail in 2021 will be 3.81% higher than the limits that applied in 2020, due to indexing. Thus, for example, the maximum monthly insurance benefit for participants in underfunded pension plans terminating in 2021 is $6,034.09 per month or $72,409.08 per year for those who retire at age 65 and receive a straight life annuity.
The maximum benefit is adjusted for retirees taking earlier retirement or electing survivors’ benefits. A participant may receive benefits in excess of the maximum guarantee if certain conditions apply. ERISA requires that the maximum guaranteed amount be adjusted annually based on changes in the Social Security contribution and benefit base.
Source: 85 FR 65428.
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