NU Online News Service, Nov. 13, 2003, 3:43 p.m. EST – The Pension Benefit Guaranty Corp., the government-sponsored enterprise that backs defined benefit pension plans, says it will increase its maximum annual benefit guarantee 0.94% in 2004, to $44,386.22.
The PBGC insures $1.5 trillion in U.S. pension benefits and is responsible for paying benefits to about 1 million members of 3,200 terminated pension plans. The agency computes the annual adjustment to the maximum benefit guarantee using a formula that incorporates changes in Social Security contributions and changes in the benefit base.
