PBGC deficit could reach combined $34 billion by 2019
By Doug Halonen | May 4, 2010 3:50 pm
The PBGC’s single-employer pension plan program could have a deficit of $30 billion by 2019, while its multiemployer plan program could see a $4 billion shortfall by then, according to the agency’s 2009 annual report issued Tuesday.
The deficits represent the average possibilities for the two pension programs calculated using the PBGC’s pension insurance modeling, or PIMS, system.
As of Sept. 30, the Pension Benefit Guaranty Corp.’s single-employer program had a deficit of $21.1 billion, with $68.7 billion in assets and $89.8 billion in liabilities, according to the agency’s annual management report, which was issued in November.
The multiemployer plan program had an $870 million deficit, with assets of $1.45 billion and liabilities of $2.32 billion, as of Sept. 30.
“Although there are signs of an economic recovery taking hold, PBGC remains vigilant,” Vincent Snowbarger, acting PBGC director, said in the annual report. “Historically, plan terminations have continued for years following a downturn, and economic recoveries can be short-lived.”