PBGC Reports Five-Fold Increase in Multiemployer Program
Deficit
Earlier this week, the Pension Benefit Guaranty Corporation
(PBGC) released its 2014 Annual
Report, which showed that the deficit in its single-employer
termination-insurance program is approximately $19.3 billion, a
reduction of some $8.1 billion from the previous year.
Unfortunately, the Annual Report also stated that the multiemployer
program now has a deficit of $42.4 billion, compared with $8.3
billion last year.
The five-fold increase in PBGC's multiemployer program
deficit is consistent with PBGC's FY 2013
Projections Report, released this past June, which projected
that multiemployer plan insolvencies affecting more than one
million of the 10 million beneficiaries in multiemployer plans are
"more likely and more imminent." PBGC's multiemployer
program is funded and maintained separately from other PBGC
insurance programs, and the multiemployer program's ballooning
deficit is due largely to
