On October 19, 2010, the Pension Benefit Guaranty Corporation (PBGC) announced that the maximum insurance benefit for participants in underfunded pension plans terminating in 2011 will be $54,000 per year for those who retire at age 65. The amount is higher for those who retire later and lower for those who retire earlier or elect survivor benefits.
The PBGC maximum insurance benefit is indexed to a contribution and benefit base in Social Security law. Because that amount does not increase for 2011, the PBGC maximum insurance benefit is unchanged from 2010. The chart setting the 2011 annual and monthly maximum benefit guarantees for retirees from age 75 to 45 is available at http://www.pbgc.gov/media/news-archive/news-releases/2010/pr11-04.html.
The PBGC also announced that there will be no increase in the flat-rate premium for plan year 2011. The per-participant flat-rate premium for plan year 2011 will remain $35 for single-employer plans and $9.00 for multiemployer plans.