GAO on PBGC

The United States Government Accountability Office (GAO) released a 60 page report this week that “provides an update on the nation’s fiscal health as of the end of fiscal year 2017 and describes its likely fiscal future if policies don’t change” where the Pension Benefit Guaranty Corporation (PBGC) and multiemployer plans got a mention:


The PBGC’s financial future is uncertain because of long-term challenges related to PBGC’s governance and funding structure. PBGC’s liabilities exceeded its assets by almost $76 billion as of the end of fiscal year 2017—an increase of about $40 billion from the end of fiscal year 2013 (see figure 9). PBGC reported that it is subject to potential further losses of $252 billion if plan terminations occur that are considered reasonably possible. PBGC’s single-employer program covers defined benefit pension plans that generally are sponsored by one employer, while the multiemployer program is a pension plan created through a collective bargaining agreement between employers and a union. The multiemployer program protects over 10 million workers and retirees in about 1,400 pension plans and the single-employer program protects about 30 million workers and retirees in about 22,500 pension plans. While the single-employer program’s financial condition is likely to improve over the next 10 years, the multiemployer program faces serious challenges and is likely to run out of money by the end of fiscal year 2025.

2 responses to this post.

  1. Posted by skip3house on June 23, 2018 at 10:06 am

    Get into our heads PBGC ‘protects’ maybe less than 40% of expected pension amounts due to ignorance, hopes with no facts, and plain stupidity/greed/dishonesty by many of those involved.

    Reply

    • Posted by PS Drone on June 23, 2018 at 3:09 pm

      It protects zero percent after its reserves run out. Kind of like running on an empty gas tank. Do you keep it at 60 and run out quick or reduce to 30 and last longer?

      Reply

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