The PBGC's multiemployer pension plan program is likely to face insolvency by the end of 2025, while the single-employer program could eliminate its deficit by 2022, said the agency's fiscal 2016 projections report released Thursday.
The annual projections report provides a range of estimates of the future status of insured pension plans and their effect on the Pension Benefit Guaranty Corp.'s financial condition, based on hundreds of different economic scenarios.
Absent any changes in law or additional resources, the multiemployer program's fiscal year 2016 deficit of $59 billion is projected to grow in nominal terms to nearly $80 billion in fiscal year 2026, Thursday's report said
On the flip side, the single-employer program's fiscal condition is expected to improve over the next 10 years with its fiscal year 2016 deficit of $21 billion likely to reach a surplus by the end of fiscal year 2022 and a surplus of $9.6 billion in fiscal year 2026, an increase of $7 billion from last year's projections report.
A PBGC news release on Thursday's report notes that President Donald Trump's fiscal 2018 budget, which proposes a new variable rate premium and exit premium for the multiemployer program, could raise an additional $16 billion in premium revenue over the budget's 10-year window.