PBGC Projections for Multi-Employer Programs
August 11, 2017
On August 3, 2017, the Pension Benefit Guarantee Corporation (PBGC) FY2016 Projections Report reported the insurance program for multi-employer pension plans covering more than ten million Americans is likely to run out of money by the end of 2025. At the same time, projections for the PBGCs insurance program for single employer pension plans, such as United Airlines, which covers some 28 million people show that it’s financial condition is likely to continue to improve. Not only is this program highly unlikely to run out of money in the next 10 years, it is likely to eliminate its deficit within the next three to seven years.
This article, while perhaps confusing on its face, is creating some concern for our Members. For this reason, we want to be clear. While the PBGC does guarantee the pensions of several work groups from United Airlines, ours is not a multi-employer pension plan. The benefits for United employees are protected as part of a PBGC single employer program and is, therefore, expected to continue to improve in overall health.
If you have additional questions, please contact your Local Council Office.