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Pension Insurer Boosts Guaranteed Single-Employer Plan Payouts

Oct. 21, 2021, 1:44 PM

Pension beneficiaries in failed single-employer retirement plans can expect a 2.82% increase in the value of monthly payments the federal government will cover beginning in 2022.

Annual maximum guarantees set by the Pension Benefit Guaranty Corporation are tied to a Social Security index and vary based on age. Social Security income will rise 5.9% in 2022, the largest year-to-year increase in 40 years. During a sluggish economic recovery, cost-of-living adjustments are a harbinger for Covid-fueled inflation already being seen in higher prices at grocery stores and gas pumps.

When single-employer pension plans go bankrupt, the PBGC assumes responsibility, paying out ...

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