Benefits

PBGC Boosts Maximum Benefit in 2012 to Nearly $56,000

By Jerry Geisel

Nov. 27, 2011

The maximum benefit that the Pension Benefit Guaranty Corp. will guarantee to participants who retire at age 65 and are in plans that the agency takes over next year will be $55,840.92, up from $54,000 this year, the PBGC announced Wednesday.

Changes in the maximum benefit guarantee, which will increase 3.4 percent next year, are linked to wage inflation.

In fiscal 2011, the PBGC paid nearly $5.5 billion to participants in plans taken over by the agency.Earlier this month, the PBGC reported a record $26.1 billion deficit—up from $23 billion in fiscal 2010—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.

Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management. To comment, email editors@workforce.com.

Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.

Jerry Geisel writes for Business Insurance, a sister publication of Workforce Management.

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Benefits

What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness