The premiums multiemployer pension plans pay to the Pension Benefit Guarantee Corp. will have to increase exponentially for the federal insurance program to avoid insolvency, according to the agency’s most recent budget projections, released today.
The PBGC’s multiemployer program, which provides partial pension guarantees to more than 10 million participants in about 1,400 collectively bargained multiemployer plans, has more than a 50-percent chance of becoming insolvent by 2025, and a 90-percent chance by 2028, according to the fiscal year 2015 Projections Report.
Premium increases authorized in the 2014 Multiemployer Pension Reform Act have delayed the program’s impending insolvency by two years, according to a PBGC official in a press call.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
