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Outlook for PBGC’s Multi-Employer Program Weakens

While both the PBGC single- and multi-employer pension plan programs are currently facing deficits, the outlook for the multi-employer program is much grimmer. According to Pensions & Investments, the single-employer program could eliminate its deficit by 2022, and may reach a surplus in the same year. Meanwhile, the multi-employer program could face insolvency by 2025. “It’s more likely than not that we will be insolvent,” according to Tom Reeder, the director of the PBGC. As part of the 2018 proposed budget, the Trump administration calls for the addition of variable rate and exit premiums to the multi-employer program, which according to Reeder, “will keep us solvent for two decades.”