At a glance
- The increase is $323.87 a month at 65, or $3,886 a year.
- For advisors whose clients sponsor a covered single-employer plan, the limit is the ceiling on PBGC's guarantee per participant.
- Multiemployer plans get no such increase, because their guarantee is not subject to indexing.
PBGC set the maximum single-employer guarantee at $8,113.64 a month for participants at age 65 in plans that terminate in 2027, up from $7,789.77 for 2026, the agency announced Oct. 19.
The increase is $323.87 a month at 65, or $3,886 a year. The 4.16% rise reflects indexing rules under federal law, according to Groom Law's Benefits Brief. The published limit is for a single life annuity starting at 65, and PBGC adjusts it for benefits payable at earlier ages and in different forms, so the figure that applies to an early start or a joint-and-survivor election differs from the age-65 maximum.
For advisors whose clients sponsor a covered single-employer plan, the limit is the ceiling on PBGC's guarantee per participant. The agency insures private defined benefit plans against the risk of a failure to pay benefits when due, but only up to that maximum. The same number feeds the annuity-versus-lump-sum comparison a plan sponsor runs around a termination: a 2027 termination carries a cap $323.87 a month higher at 65 than a 2026 termination.
Multiemployer plans get no such increase, because their guarantee is not subject to indexing. It remains 100% of the first $11 of the plan's monthly benefit plus 75% of the next $33. The single-employer limit is a separate annual adjustment from the agency's rate reset, which cut premium funding targets and raised late interest, as Retirement Capital Daily reported.
Reported by the Policy & ERISA desk from Groom Law — Benefits Brief and Retirement Capital Daily archive. Published . Corrections