The premiums multiemployer pension plans pay to the Pension Benefit GuaranteeCorp. will have to increase exponentially for thefederal insurance program to avoid insolvency, according to theagency’s most recent budget projections, released today.

The PBGC’s multiemployer program, which providespartial pension guarantees to more than 10million participants in about 1,400 collectively bargainedmultiemployer plans, has more than a 50-percent chance of becominginsolvent by 2025, and a 90-percent chance by 2028, according tothe fiscal year 2015 Projections Report.

Premium increases authorized in the 2014 Multiemployer PensionReform Act have delayed the program’s impending insolvency by twoyears, 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.