The Pension Benefit Guaranty Corp. paid more than $5.4 billion to 842,000 retirees in terminated single-employer pension plans in fiscal year 2014, according to new data released this week.
Those liabilities were funded, in part, by increased premiums. Sponsors paid $3.8 billion in premiums in 2014, up from $2.9 billion in 2013 and a record amount of premium revenue for the agency.
Rising premiums, in accord with workers' longer life expectancies, will continue to increase defined benefit plan sponsors' liabilities, and motivate a continued trend in pension de-risking, according to a recent Aon Hewitt survey.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
