The Pension Benefit Guaranty Corporation (PBGC) announced on Oct. 17 that the guarantee limits for single-employer plans that fail in 2024 will be 5.30% higher than the limits that applied for 2023. 
The increase in the guarantee limit is almost 3.5 percentage points less than that announced in October 2022 for single-employer plans that fail in 2023, which was 8.79% higher than the limits that applied for 2022.
The maximum guarantee for participants in single-employer plans is determined using a formula prescribed by federal law that calls for periodic increases tied to a Social Security index. The formula provides lower amounts for younger people, reflecting the fact that they will receive more monthly pension checks over their expected lifetime. Conversely, amounts are higher for those who are older. The formula also calls for reducing the amount for retirees who choose a payment form that continues to provide benefits to a beneficiary after the retiree’s death.
A table showing the guarantee limits for various ages and payment forms for single-employer plans is available on PBGC's website here.
The guarantee limits for multiemployer plans are not indexed and have not changed.
The guarantee limit for multiemployer plans is very different; a description of how it works is included on the PBGC's Multiemployer FAQ page, which can be accessed here.
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