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 Pension Benefit Guaranty Corporation

The Pension Benefit Guaranty Corporation (PBGC) is an independent agency of the United States government that was created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at the lowest level necessary to carry out its operations. Subject to other statutory limitations, the PBGC insurance program pays pension benefits up to the maximum guaranteed benefit set by law to participants who retire at age 65 ($54,000 a year as of 2011). The benefits payable to insured retirees who start their benefits at ages other than 65, or who elect survivor coverage, are adjusted to be equivalent in value.


During fiscal year 2010, the PBGC paid $5.6 billion in benefits to participants of failed pension plans. That year, 147 pension plans failed, and the PBGC's deficit increased 4.5 percent to $23 billion. The PBGC has a total of $102.5 billion in obligations and $79.5 billion in assets.

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updated Sat. February 24, 2018

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The Budget Act establishes a bipartisan Committee made up of eight House and eight Senate members tasked with addressing the solvency issues confronting multiemployer pension plans and the Pension Benefit Guaranty Corporation. It directs the Committee to provide recommendations to address the ...
The plan is terminated, and taken over by the Pension Benefit Guaranty Corporation (PBGC). The PBGC is a federal insurance agency funded by premiums from pension plans to protect participants in private-sector defined-benefit plans. If a pension does not have sufficient funds to pay retirees, the PBGC ...

"The goal of the joint committee is to improve the solvency of multiemployer pension plans and the Pension Benefit Guaranty Corporation," according to language in the Budget Act. But solving the existential threat to as many as 200 collectively bargained multiemployer pensions and the PBGC--the ...
The rationale for employers to consider additional funding was motivated by many factors -- increasing Pension Benefit Guaranty Corporation (PBGC) premiums, growing interest in de-risking strategies, desire to smooth out future contributions and in some cases, the anticipation of lower future corporate ...
"Those plans would be taken over by the Pension Benefit Guaranty Corporation (PBGC). The PBGC is a federal government agency that guarantees payment of basic pension benefits earned by millions of American workers and retirees participating in over 29,000 private-sector defined benefit pension plans," said Van ...
Last November, Congressional Democrats introduced the Butch Lewis Act, which they said is legislation that "establishes a legacy fund within the Pension Benefit Guaranty Corporation [PBGC} to ensure that multiemployer pension plans can continue to provide pension benefits to every eligible American ...

"Over the past several years, I've consistently made clear to my colleagues that there is a looming multiemployer pension crisis in America, and responsible reforms are needed to protect retiree benefits, ensure the solvency of the Pension Benefit Guaranty Corporation, and allow participating employers to ...
According to the Pension Benefit Guaranty Corporation's 2016 Projections Report, issued in August, its Single-Employer Program (plans created and maintained by one company or closely affiliated companies) is improving, but its Multiemployer Program (plans created and maintained by two or more ...
In addition, he said, if the $100 million contribution were used to reduce a vested funding deficit, as used for Pension Benefit Guaranty Corporation (PBGC) purposes, the sponsor could save nearly $4 million in PBGC premiums each year that the contributions are accelerated. Owens said this reduction only ...
(The fee would increase an unspecified amount for repeat applicants.) Those fees go to the Pension Benefit Guaranty Corporation (PBGC), a government agency that insures the private retirement plans of 40 million U.S. workers. Deutsche Bank Justic Dept settlement Deutsche Bank AG said Friday it had ...
Worse still, the insurance scheme established to back those schemes is on course to run out of money by 2025, according to the Pension Benefit Guaranty Corporation. It is hard to cut workers' benefits and painful to increase contributions. Schemes hope to square the circle by earning a high return from ...
On his reading, the Pension Benefit Guaranty Corporation (PBGC), which insures corporate and union pensions in the U.S., has admitted this much in its most recent reporting. Pointing specifically to the 2017 Annual Report of the Participant and Plan Sponsor Advocate, for example, Cohen says he is ...
On his reading, the Pension Benefit Guaranty Corporation (PBGC), which insures corporate and union pensions in the U.S., has admitted this much in its most recent reporting. Pointing specifically to the 2017 Annual Report of the Participant and Plan Sponsor Advocate, for example, Cohen says he is ...
If they face a shortfall, the federal Pension Benefit Guaranty Corporation (PBGC) provides a backstop that would give most retirees the vast majority of the money they're owed. This is not the case for the roughly 10 million workers and retirees in multi-employer plans--often in industries such as construction ...
The Pension Benefit Guaranty Corporation (PBGC) is required to amend its regulations annually to adjust for inflation the maximum civil penalty for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices. As such, the agency has issued a ...
The Pension Benefit Guaranty Corporation (PBGC) is required to amend its regulations annually to adjust for inflation the maximum civil penalty for failure to provide certain notices or other material information and for failure to provide certain multiemployer plan notices. As such, the agency has issued a ...
Willis Towers Watson retirement consultants said the rush of contributions was most likely in response to rising Pension Benefit Guaranty Corporation (PBGC) premiums for DB plans, rising interest in "derisking" strategies to remove pension obligations from corporate balance sheets, and potentially in ...

When they do, they're expected to exhaust the assets of the government program that's supposed to insure them. The Pension Benefit Guaranty Corporation (PBGC) maintains a separate program for multiemployer pension plans: Plans pay premiums to the PBGC, and the PBGC pays benefits if the plans ...
"Several plan sponsors contributed more to their plans last year than originally expected, most likely in response to rising Pension Benefit Guaranty Corporation premiums and growing interest in de-risking strategies, and potentially in anticipation of lower future corporate rates from tax reform. The improved ...
It recommends instead reforming the Pension Benefit Guaranty Corporation to protect pensioners. But Brown said that if the plans fail, taxpayers would be at risk of having to help prop up the PBGC. The retirees "earned every dollar of their retirement, and out of no fault of their own, the money they earned is ...
"Several plan sponsors contributed more to their plans last year than originally expected, most likely in response to rising Pension Benefit Guaranty Corporation premiums and growing interest in de-risking strategies, and potentially in anticipation of lower future corporate rates from tax reform. The improved ...
In his testimony last November in the House, Pension Benefit Guaranty Corporation (PBGC) Director Thomas Reeder wrote, "Legislation is needed to address the looming insolvency of PBGC's Multiemployer Program." He noted that several proposals have been put forward, some of which would help the ...
It recommends instead reforming the Pension Benefit Guaranty Corporation to protect pensioners. But Brown said that if the plans fail, taxpayers would be at risk of having to help prop up the PBGC. The retirees "earned every dollar of their retirement, and out of no fault of their own, the money they earned is ...
It recommends instead reforming the Pension Benefit Guaranty Corporation to protect pensioners. But Brown said that if the plans fail, taxpayers would be at risk of having to help prop up the PBGC. The retirees "earned every dollar of their retirement, and out of no fault of their own, the money they earned is ...
"Not only does this mean they do not have to pay premiums to the PBGC [Pension Benefit Guaranty Corporation], but they may also request a refund of any premiums paid in the prior six years," he says. Another difference that can be an issue for dual-qualified plans is that in Puerto Rico, the average ...
"Several plan sponsors contributed more to their plans last year than originally expected, most likely in response to rising Pension Benefit Guaranty Corporation premiums and growing interest in de-risking strategies, and potentially in anticipation of lower future corporate rates from tax reform. The improved ...
It estimates that would add $16 billion to the Pension Benefit Guaranty Corporation's program over the next decade. That is still far short of what would be needed to cover the obligations but would buy time to get fuller solution, the administration has said. Democratic staffers say that engagement is a good ...
Why the case is important: The Court validated nearly forty years of administrative decisions by the Internal Revenue Service, the Department of Labor, and the Pension Benefit Guaranty Corporation by explicitly affirming that plans established by church-affiliated hospitals and other organizations can be ...
1, 1900, the DOL official said. These kinds of "red flags" are things plans should take notice of, the official said. The EBSA's Chicago Regional office adopted a "missing participant" regional initiative in fiscal year 2017. That office has been working with the Pension Benefit Guaranty Corporation on this issue ...
The Pension Benefit Guaranty Corporation (PBGC) is expanding its Missing Participants Program to terminated defined contribution (DC) and other plans in an effort to connect more people to their retirement savings. "PBGC's expanded Missing Participants Program addresses an important problem and ...
The Pension Benefit Guaranty Corporation (PBGC) has issued a rule amending its regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation ...
Thomas Reeder, director of the Pension Benefit Guaranty Corporation, told a congressional panel last month that pension premiums paid into his organization had been "too low for too long" to insure the nation's pension plans. The PBGC's multiemployer plan covers 10 million workers and retirees in about ...
Massive underfunding currently threatens the solvency of workplace pension plans, in turn threatening pensioners with severe benefit cuts, employer sponsors with crushing obligations, and insolvency of the entire pension insurance system operated by the Pension Benefit Guaranty Corporation (PBGC).
Plan administrators seeking a standard termination of a defined benefit pension plan must comply with very specific Employee Retirement Income Security Act (ERISA) rules and Pension Benefit Guaranty Corporation (PBGC) regulations. A U.S. District Court recently reviewed the process for standard ...
Nearly three-quarters of respondents to the survey said they were either considering increasing their pension contributions (33%) or had already done so (40%), to reduce the premiums they pay to the Pension Benefit Guaranty Corporation (PBGC). 17Dec_FieldNotes_Fig1 Steadily increasing levies ...
The Pension Benefit Guaranty Corporation ("PBGC"), the Federal agency with regulatory and enforcement authority over MPPAA, and that backstops multiemployer plan benefits, is itself in financial distress. The PBGC is projected to be insolvent within 5 years, which could wipe out the retirement security of ...
It would be nice to think that all employers are responsible enough to amply fund their pension accounts, but in reality, pensions regularly fail as a result of underfunding. In fact, the Pension Benefit Guaranty Corporation estimates that by the end of 2013, nonunion private pension plans were underfunded to ...
The strain on the multiemployer pension system carries another risk -- the potential annihilation of the Pension Benefit Guaranty Corporation, the government agency that insures pension plans. The P.B.G.C. said in its latest annual report that its multiemployer program is likely to run out of money by the ...
This means that even if the employer goes out of business, the pension is insured by the Pension Benefit Guaranty Corporation. CFOs, who otherwise are keenly aware of opportunities in their budgets to save money, may miss some of the ways an organization can get a break on pension funding. For one ...
Siegel adds, "Several plan sponsors contributed more to their plans last year than originally expected, most likely in response to rising Pension Benefit Guaranty Corporation premiums and growing interest in derisking strategies, and potentially in anticipation of lower future corporate rates from tax reform.
Splitting up a defined benefit (DB) plan into a plan that covers participants subject to the variable-rate premium headcount cap and a plan that covers all other participants may reduce the Pension Benefit Guaranty Corporation (PBGC) variable-rate premiums in two ways, according to an article penned by ...
Splitting up a defined benefit (DB) plan into a plan that covers participants subject to the variable-rate premium headcount cap and a plan that covers all other participants may reduce the Pension Benefit Guaranty Corporation (PBGC) variable-rate premiums in two ways, according to an article penned by ...
The Pension Benefit Guaranty Corporation (PBGC) has issued a rule amending its regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for determining expected retirement ages for participants in pension plans undergoing distress or involuntary termination with valuation ...
#3: How will Pension Benefit Guaranty Corporation (PBGC) premiums be managed? Flat rate PBGC premiums will rise from $69 to $74 per participant in 2018 while variable rate premiums for underfunded plans will increase from $34 to $38 per $1,000 of underfunding. Pension sponsors have looked to ...
The Pension Benefit Guaranty Corporation (PBGC) has asked the Office of Management and Budget (OMB) to extend approval, with modifications, of its collection of information through the Form 5500. The modifications are to 2018 Schedule MB (Multiemployer Defined Benefit Plan Actuarial Information) ...
And Delta has no problem taking advantage of subsidies--fuel tax breaks in Georgia, subsidies for its oil refinery in Pennsylvania, and having moved pension obligations onto the federal Pension Benefit Guaranty Corporation in bankruptcy. Delta even shares revenue on routes across the Atlantic with ...
Thomas Reeder, director of the Pension Benefit Guaranty Corporation, told a congressional panel last month that pension premiums paid into his organization had been "too low for too long" to insure the nation's pension plans. The PBGC's multiemployer plan covers 10 million workers and retirees in about ...
Should Central States become insolvent and benefits are reduced, the IBT Consolidated Pension Fund will restore benefit reductions above the level guaranteed by the Pension Benefit Guaranty Corporation (PBGC). Moving forward, current associates also will begin earning a new pension benefit through ...
In the release, the retailer also said it had obtained a new secured credit facility through Pension Benefit Guaranty Corporation, which Sears said will allow it to pay $407 million in pension contributions and "for general corporate purposes." The credit facility is secured with 138 Sears properties through a ...
Massive underfunding currently threatens the solvency of workplace pension plans, in turn threatening pensioners with severe benefit cuts, employer sponsors with crushing obligations, and insolvency of the entire pension insurance system operated by the Pension Benefit Guaranty Corporation (PBGC).


 

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