The Pension Benefit Guaranty Corporation (PBGC) on November 15 released its Fiscal Year 2022 Annual Report. (PBGC Press Release No. 22-40)
The agency’s 2022 Annual Report shows that its Multiemployer Program had a positive net position of $1.1 billion at the end of fiscal year 2022 compared to $481 million at the end of the prior year. In FY 2022, the PBGC provided $226 million in traditional financial assistance to 115 multiemployer plans covering 93,525 participants receiving guaranteed benefits.
In its FY 2019 report, the PBGC projected the Multiemployer Program would run out of money in FY 2026. According to the latest report, now it “is likely to remain solvent for more than 40 years, due to the enactment of the American Rescue Plan Act of 2021 (ARP).” In FY 2022, the PBGC “made significant progress in continuing the successful implementation of the Special Financial Assistance Program which was established under ARP,” it noted.
The Single-Employer Program had assets of $124.4 billion and liabilities of $87.8 billion as of the end of FY 2022. “The positive net position of $36.6 billion at the end of FY 2022 reflects an improvement of $5.7 billion, compared to $30.9 billion at the end of FY 2021,” the report stressed.
During FY 2022, the PBGC paid more than $7 billion in benefits to more than 960,000 retirees in terminated single-employer plans. The PBGC also assumed responsibility for the benefit payments of nearly 8,000 current and future retirees in 32 single-employer plans that were trusteed during the fiscal year.
“For the second year in a row, PBGC’s insurance programs are both reporting positive net financial positions,” PBGC Director Gordon Hartogensis said. “The agency remains committed to implementing the Special Financial Assistance Program and ensuring that millions of America’s workers, retirees, and their families receive the pension benefits they earned through many years of hard work.”
Biden names PBGC Advisory Committee members. Meanwhile, on November 16, President Biden appointed the following four members to serve on the agency’s seven-member Advisory Committee (PBGC Press Release No. 22-41):
- Jeanmarie Grisi who was reappointed to the panel and will serve as its chair. She is head of global pensions at Nokia and will continue to represent the interests of employers in addition to her responsibilities as chair.
- Mike Jacobson who recently retired from his position as administrator of the National Automatic Sprinkler Industry Funds. He will represent the interests of the general public.
- Joe LoCicero who is currently the chair of the Segal group. He will represent the interests of the general public.
- Kweku Obed who is a managing director for Marquette Associates and serves on the firm’s board of directors. He will represent the interests of employers.
Get all the latest tax, accounting, audit, and corporate finance news with Checkpoint Edge. Sign up for a free 7-day trial today.
