PBGC Annual Report Shows the Multiemployer Program Remains on Path to Insolvency by 2026
The U.S. Pension Benefit Guaranty Corporation (PGBC) has released its fiscal year 2020 annual report. In it, the PBGC reports that the multiemployer pension program “continues to face a crisis” and is highly likely to become insolvent in 2026. It notes, however, that the multiemployer deficit improved slightly over the fiscal year, going from a $65.2 billion deficit in 2019 to a $63.7 billion this fiscal year.
The slight improvement in the program deficit was the result of Congress passing legislation in 2019 to address the impending insolvency of the United Mine Workers of America 1974 Pension Plan. This legislation accounts for the delay in the program’s insolvency by one year to 2026. In the report, PBGC Director Gordon Hartogensis said that the multiemployer program will need additional legislative reform to avert insolvency.
You can read the full report here.
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