November 19, 2015
The Pension Benefit Guaranty Corporation’s (PBGC) program for single-employer pension plans had a deficit of $24.1 billion in 2015 according to the PBGC’s just-issued 2015 annual report. The deficit reflects the present value of future expected payments from plans that have terminated or are expected to terminate in the next 10 years, less PBGC’s single-employer assets. This is an increase from the 2014 deficit of $19.3 billion, mainly as a result of lower interest rates. Because PBGC pays benefits as annuities, it has sufficient assets to pay benefits for many years. The 2015 deficit of $24.1 billion will be the starting point for PBGC’s projections of the probability of deficits in future years (as the 2014 deficit of $19.3 billion was the starting point for PBGC’s projections issued on September 29, 2015).
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