PBGC’s FY 2024 Projections Report Shows Improved Outlook for Insurance Programs

The Pension Benefit Guaranty Corporation (PBGC) released the agency’s Fiscal Year 2024 Projections Report, which shows an improved financial outlook for both its Multiemployer and Single-Employer pension insurance programs.

Together, these programs protect about 30 million workers and retirees in private sector defined benefit pension plans.

The Projections Report provides a 10-year projected financial outlook for the agency’s two insurance programs. The report also provides additional projections over 40 years for the Multiemployer Program.

Projections indicate the Multiemployer Insurance Program is likely to remain solvent for the next 40 years.

Projected outcomes in this year’s report improved from last year’s projections, driven by an improved outlook for the plans covered by PBGC’s insurance program.

The new projections show that the net position of the PBGC’s Single-Employer Program is expected to grow throughout the 10-year projection period – from $54 billion, as of Sept. 30, 2024, to an estimated average of $105 billion in 2034.

PBGC’s model shows the Single-Employer Program is financially secure and will not enter a negative net position within the next 10 years.

PBGC protects the retirement security of about 30 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private sector pension plans.

The agency’s two insurance programs are legally separate and operationally and financially independent.

PBGC is directly responsible for the benefits of nearly 1.4 million participants and beneficiaries in failed single-employer pension plans.

The Single-Employer Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans.

The Multiemployer Program is financed by insurance premiums and investment income.

 Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.