PBGC Fiscal Year 2017 Annual Report: Multiemployer Program Deficit Widens to $65.1B; Single-Employer Program Continues to Improve, Deficit Narrows to $10.9B
The
PBGC's Single-Employer Insurance Program continued to improve as the deficit dropped to
"We are pleased that the financial condition of the Single-Employer Program is improving, consistent with our projections," said PBGC Director
PBGC's mission is to enhance retirement security by preserving pension plans and protecting participants' benefits. PBGC runs two separate pension insurance programs: single-employer and multiemployer. While each program is designed to protect participants' pension benefits when plans fail, they differ significantly in the level of benefits guaranteed, the insurable event that triggers the guarantee and premiums paid by insured plans. By law, the two programs are financially separate. Assets of one program may not be used to pay obligations of the other.
Multiemployer Program Deficit Rises to
The Multiemployer Program had liabilities of
During FY 2017, the agency provided
In the PBGC's most recent Projections Report, the agency estimated that, absent changes in law, its Multiemployer Program is likely to run out of money by the end of 2025, and there is considerable risk that it could run out before then. If the Multiemployer Insurance Program becomes insolvent, PBGC will only be able to provide enough financial assistance to pay a small fraction of guaranteed benefits in insolvent plans.
Single-Employer Program Deficit Improves to
The Single-Employer Program had liabilities of
During FY 2017, the agency became responsible for 82 single-employer plans that terminated without enough money to provide all promised benefits. Those plans cover 23,000 current and future retirees. In addition, PBGC helped to protect over 26,700 people by taking action in Chapter 11 cases to encourage companies to keep their plans ongoing upon emerging from bankruptcy. PBGC also negotiated two agreements under its Early Warning Program that provided nearly
Customer Satisfaction
Excellent customer service is a top priority at PBGC. The reviews from many of the retirees the agency serves affirm that PBGC is living up to that commitment. In FY 2017, PBGC received a retiree customer satisfaction score of 91, which is among the best in public and private sectors, according to the American Customer Satisfaction Index.
About PBGC's FY 2017 Financial Report
PBGC's financial statements are prepared in accordance with generally accepted accounting principles in the
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