17 09, 2020

Multiemployer plans get tiny reprieve in latest PBGC report

2020-09-17T08:52:49-07:00September 17th, 2020|Categories: PBGC|Tags: |

The Pension Benefit Guaranty Corp.'s single-employer program will remain in the black over the next decade, while the multiemployer program could gain another year or two before insolvency, according the agency's latest projections report released Monday. The report for fiscal year 2019 provides 10-year projections ended Sept. 30, under a range of financial scenarios. As of Sept. 30, 2019, the single-employer program had $46.3 billion in assets, while the multiemployer program had a deficit of $82.3 billion. Last year's [...]

1 06, 2018

PBGC Projects Multiemployer Insurance Program Becomes Insolvent in 2025

2018-07-13T15:13:30-07:00June 1st, 2018|Categories: PBGC|Tags: |

The Pension Benefit Guaranty Corporation (PBGC) issued its FY 2017 Projections Report indicating, absent changes in law or additional resources, the likelihood that the multiemployer program will run out of money before the end of fiscal year 2025 has grown to over 90 percent. There remains a significant chance the program will run out of money during FY 2024. The likelihood the program will remain solvent after FY 2026 is now less than 1 percent. Multiemployer Program Deficit Expected [...]

29 11, 2017

America’s pension crisis demands action by Congress

2017-11-29T11:49:04-08:00November 29th, 2017|Categories: PBGC|Tags: |

We are approaching a crisis that threatens the retirement future of millions of hardworking middle-class Americans. Today, Wednesday, this assessment will be confirmed in testimony by the director of the Pension Benefit Guaranty Corporation (PBGC), Tom Reeder, before the House Committee on Education and the Workforce. Director Reeder will detail the systemic issues threatening multiemployer pension plans and argue for raising PBGC premiums. While it is encouraging that Director Reeder and Congress recognize the need for immediate and decisive action to [...]

20 09, 2017

PBGC Premiums Driving DB Plan Sponsors to Fund, De-Risk

2017-09-20T23:07:39-07:00September 20th, 2017|Categories: PBGC|Tags: |

Eighty percent of defined benefit (DB) plan sponsors have accelerated funding, largely due to increasing Pension Benefit Guarantee Corporation (PBGC) fees and the prospect of lower corporate taxes, according to results of the Mercer/ CFO Research 2017 Risk Survey, “Adventures in Pension Risk Management.” “Two years ago, mortality assumptions dominated as the main influencing factor. Today, PBGC premiums and market conditions have emerged as most cited reasons. Companies feel that the time is right to reduce or eliminate their pension funding shortfalls.” [...]

16 11, 2016

PBGC picks restructuring chief

2016-11-16T21:13:29-08:00November 16th, 2016|Categories: PBGC|Tags: |

Karen Morris was named chief of negotiations and restructuring for the Pension Benefit Guaranty Corp., the agency said Tuesday. Ms. Morris, who currently serves as deputy chief counsel, has been with the PBGC since 1988 and served as acting head of the restructuring office for the past six months. Her predecessor, Sanford Rich, left the agency in January. […]

21 09, 2016

PBGC Seeks to Widen Efforts to Find Missing Plan Participants

2016-09-21T17:10:56-07:00September 21st, 2016|Categories: PBGC|Tags: , , |

The PBGC is stepping up its game by expanding the program it uses for locating missing pension plan participants and beneficiaries who are owed benefits. The Pension Benefit Guaranty Corporation’s proposed rule on missing participants, issued Sept. 19, is another step federal agencies are taking to ensure employees are paid their pension benefits after plans terminate. […]

8 08, 2016

Unforeseen consequences one legacy of the Pension Protection Act

2016-08-08T20:34:26-07:00August 8th, 2016|Categories: PBGC|Tags: , |

Like many pension-related laws, the Pension Protection Act that passed a decade ago was designed to address a crisis. At the time, underfunded pension plans were threatening the financial stability of the Pension Benefit Guaranty Corp. But while the act did help strengthen the federal agency, it also had the unintended effect of discouraging defined benefit plan sponsors and hastening the switch to defined contribution plans, observers say. “It was sold on the basis that we were going to [...]

1 06, 2016

Federal insurance fund protecting millions of pensions is running out of cash

2016-06-01T18:10:34-07:00June 1st, 2016|Categories: PBGC|Tags: |

One of the nation’s largest multi-employer pension funds says it is out of ideas for ways to save itself from impending failure. After the Treasury Department rejected its Hail Mary proposal, which would have substantially cut benefits for some retirees, the Central States Pension Fund has little choice but to turn to a federal insurance program that is supposed to offer a lifeline to troubled pension funds. But there’s one major problem that program is expected to run out [...]

1 04, 2016

PBGC says multiemployer premiums must go up

2016-04-01T20:30:58-07:00April 1st, 2016|Categories: PBGC|Tags: |

Current premiums paid by beneficiaries in multiemployer pension plans are not enough to sustain the Pension Benefit Guaranty Corp.’smultiemployer insurance program, according to a report the agency is required to file with Congress every five years. In 2016, enrollees pay a $27 per-participant premium. The Multiemployer Pension Reform Act of 2014 doubled premiums to $26 for 2015. PBGC’s 2014 projections report estimated that the agency’s premium levels and returns on assets will be enough to sustain the multiemployer program for [...]

11 02, 2016

North America’s Building Trades Unions Strongly Oppose PBGC Tax Increase on Working Families in President’s Budget

2016-02-11T23:24:15-08:00February 11th, 2016|Categories: PBGC|Tags: , |

The following statement was released today by North America's Building Trades Unions in reaction to a proposed increase in Pension Benefit Guaranty Corporation (PBGC) premiums for multiemployer plans as part of President Obama's FY 2017 budget proposal: "North America's Building Trades Unions are united in vigorous opposition to the PBGC tax increase being imposed on working families through President Obama's FY 2017 budget proposal. "The PBGC premium increase, if enacted, would result in a de facto five-fold tax increase on American workers, [...]

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