PBGC Says Multiemployer Fund Deficit Increased, Will Run Out of Money in 2026
A new report from the Pension Benefit Guaranty Corporation (PBGC) finds that the 10-year deficit in the PBGC’s multiemployer pension fund grew from $65 billion to $82 billion. The report blamed the large increase in projected deficits on a “considerable decline” in both the investment returns at union pension plans and the interest rates plans use to project their outlooks.
The report, however, says that despite the increase in the fund’s projected deficit, the PBGC’s multiemployer fund would run out a year later than was projected last year. Last year, the PBGC estimated that the multiemployer fund would run out of money in 2025. However, since Congress provided federal funding to keep the United Mine Workers Plans solvent, negating the need for PBGC assistance, the fund is now projected to run out of funding in 2026.
You can read the full report here.
© 2023 Signatory Wall and Ceiling Contractors Alliance (SWACCA). All rights reserved.