The American Benefits Council sought to clarify common misconceptions that could result from the Pension Benefit Guaranty Corporation’s (PBGC) 2014 annual report, in which it claims a $36 billion deficit for the 2013 fiscal year. In 2012, the agency reported a deficit of $34 billion. The agency reported that the deficit for the single employer guarantee program declined by $1.7 billion, while for the multi-employer system it grew by $3 billion.
“The agency’s reported deficit is a projection based largely on unrealistic assumptions and does not reflect the actual health of the PBGC or the defined benefit pension system. It certainly should not be used to justify raising premiums – yet again – paid by pension plan sponsors,” American Benefits Council President James A. Klein said.
