PBGC Annual Projections Report

Document Excerpt

The Pension Benefit Guaranty Corporation (PBGC) insures pension participants against loss of some or all of their pension benefit when a private sector pension plan fails. PBGC operates two separate insurance programs, one for Single-Employer and one for Multiemployer defined benefit pension plans. The amount of benefits guaranteed, the point at which the guarantees apply, and the funding sources are quite different between the two programs. This report provides long-term financial projections for both programs. This year’s projections for PBGC’s Multiemployer Program continue to show a very high likelihood of insolvency during FY 2025, and that insolvency is a near certainty by the end of FY 2026. Compared to last year’s projections, the potential risk that insolvency occurs during FY 2024 is lower. The Multiemployer Program continues to report deficits (i.e., negative net positions1 ) much larger than those historically seen in the Single-Employer Program. Multiemployer Program deficits are expected to grow over time. New results for PBGC’s Single-Employer Program show the program is likely, but not assured, to remain out of deficit over the next decade. As noted in PBGC’s FY 2018 Annual Report, increasing interest factors and premium collections2 led to the program emerging from deficit for FY 2018 within the range shown in the prior Projections Report, but faster than the prior mean projection.

Link
https://www.pbgc.gov/sites/default/files/fy-2018-projections-report.pdf?utm_medium=email&utm_source=govdelivery

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