In its 2017 annual report, the Pension Benefit Guaranty Corporation (PBGC) reviewed the funding deficits associated with both the single-employer and multiemployer programs. While the single-employer insurance program deficit was cut in half to $10.9 billion at the end of its 2017 fiscal year, the multiemployer program deficit rose an additional $6.3 billion to $65.1 billion.
The PBGC attributed the “serious challenges” of the multiemployer program to new insolvency problems with several multiemployer plans. They also projected the plan will run out of money by 2025 and are working with Congress to come up with solutions to restore the program to “long-term solvency”, as the tools at the PBGC’s disposal are limited.
Meanwhile, the PBGC noted that recent trends pertaining to “claims and premiums” helped improve the financial condition of the single-employer program. They credit their Early Warning Program with improving the monitoring of more than 1,500 companies to identify potential risks. The PBGC projects the deficit for the single-employer program will become a surplus over the next ten years.