The PBGC's budget deficit was $22 billion for its fiscal year, ended Sept. 30, up 96% from the $11.2 billion shortfall a year earlier, the agency announced.
The Pension Benefit Guaranty Corp.'s deficit for single-employer pension plans was $21.1 billion as of Sept. 30, 97% above the $10.7 billion deficit as of Sept. 30 in 2008, according to an agency news release.
“Exposure to possible future terminations means that we could face much higher deficits in the future,” said Vincent Snowbarger, PBGC acting director, said in the news release.
For the fiscal year, the PBGC took a $10.6 billion charge because of an “unfavorable change in interest factors,” and had $4.2 billion in losses from completed and probable plan terminations, the news release said.
The agency had $6.3 billion in investment income, $1.8 billion in net premium income, and a credit of $573 million from actuarial adjustments. The PBGC also said its investment rate of return for the fiscal year was 13.2%.
The PBGC said 27 large pension plans with total underfunding of $1.64 billion were seen as probable losses on the PBGC balance sheet. Also, the agency’s potential exposure to future pension losses from financially weak companies increased to about $168 billion for the year ended Sept. 30, more than double the $47 billion in potential exposure a year earlier.