The Pension Benefit Guaranty Corporation—the government organization that insures private pension plans—announced this month that its deficit grew to $36 billion, but some industry groups have taken issue with that number, saying it is artificially inflated.
The PBGC has been in trouble since the Great Recession hit. Add artificially low interest rates, a volatile stock market and the many corporations filing for bankruptcy and it has been the perfect storm for the PBGC.
Josh Gotbaum, director of the PBGC, said in the agency's 2013 annual report that its premiums are "both too inflexible—so that some plans are unfairly paying for the risks of others—and too low to cover PBGC's benefit guarantee levels."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
