Agency Forecasts Multiemployer Pension Plan Program Insolvency

The Pension Benefit Guaranty Corporation (PBGC) released its 2018 Projections Report, anticipating that the multiemployer program is nearly certain to be insolvent by the end of the fiscal year 2026. The PBGC insures pension participants against loss of some or all of their pension benefit when a private-sector pension plan fails. With nearly 9 percent of the 1,400 multiemployer plans that PBGC insures in critical and declining status, they will need to rely on the PBGC for financial assistance to improve their situation and avoid insolvency.

The PBGC is working with lawmakers to create a long-term solution that is sustainable and is considering proposals such as H.R. 397 and others that would include plan benefits cuts and higher premiums paid to PBGC

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