By Brian Croce
Source: Pensions & Investments
The Pension Benefit Guaranty Corp.’s multiemployer program outlook has substantially improved following passage of the American Rescue Plan Act, according to the agency’s fiscal year 2020 annual report.
Last year’s report projected a very high likelihood of the program’s insolvency by September 2025 and near certainty by September 2026. In the latest report, released Monday, the most pessimistic scenario projects the fund to go insolvent in fiscal year 2036, while optimistic scenarios project the fund to remain solvent indefinitely. The median projected insolvency year is now fiscal year 2055, according to the report.