PBGC Programs in Very Different Positions
The single-employer program is improving, but Director Gordon Hartogensis says it’s clear legislative help is needed for the multiemployer program.
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The Pension Benefit Guaranty Corporation (PBGC) has released its Fiscal Year (FY) 2020 Annual Report, which notes, among other things, that the expected insolvency date of the agency’s multiemployer insurance program has been delayed from FY 2025 to sometime in FY 2026.
Meanwhile, the single-employer insurance program is improving, driven primarily by investment income and premium income.
The multiemployer program remains severely underfunded, with liabilities of $66.9 billion but only $3.1 billion in assets as of September 30. This resulted in a deficit, or negative net position, of $63.7 billion, compared with $65.2 billion a year earlier. The decrease in the program’s deficit is primarily due to the enactment of the Bipartisan American Miners Act of 2019, which is expecte