The PBGC's single-employer program was $18.1 billion in the red for fiscal 2006, ended Sept. 30, according to a news release. That deficit compares with a $22.8 billion shortfall the year before, a reduction the PBGC attributed largely to provisions in the Pension Protection Act of 2006 that eased pension funding requirements for major airlines, allowing the agency to reduce probable liabilities on its balance sheet.
"The PBGC's financial condition appears to have stabilized for the time being," Vincent Snowbarger, PBGC interim director, said in the release. "Our current assets can cover pension payments coming due for a number of years into the future, and our exposure to additional losses has declined."
The single-employer program had assets of $60 billion as of Sept. 30, and liabilities of $78.1 billion. The agency had $73 billion in potential future exposure to losses, down from $108 billion a year earlier. Also, the total underfunding of insured single-employer plans decreased to about $350 billion in fiscal 2006, from $450 billion in 2005.
The agency took over 94 terminated single-employer pension plans in fiscal 2006, with $600 million in assets and $1.1 billion in future benefit liabilities.
The PBGC's program for multiemployer pension plans lost a net $404 million in fiscal 2006, compared to a $99 million loss in 2005. The net deficit was $739 million in 2006, up from $335 million the previous year.