The largest of the critical or declining pension plans PBGC insures, the Teamsters’ Central States Plan, is projected to be insolvent by 2025. It will amount to the straw that breaks PBGC’s back. (Photo: Shutterstock)
The Pension Benefit Guaranty Corp.’s multiemployer insurance program has a 99 percent chance of being insolvent by the end of fiscal year 2025, according to the FY 2018 Projections Report, released today.
“The alarm bells are ringing,” said PBGC director Gordon Hartogensis, in a press call.
About 125 of the 1,400 collectively bargained pension plans insured by PBGC are in critical and declining status, meaning they are expected to be insolvent within 20 years.
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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.
