The Pension Benefit Guaranty Corp. reported a deficit of $10.7 billion for its single-employer pension plan insurance program in the fiscal year ended September 30, a $2.4 billion improvement from last year’s $13.1 billion deficit, according to its annual report submitted to Congress on November 18.
The single-employer program had assets of $61.6 billion and liabilities of $72.3 billion as of September 30.
The multiemployer insurance program had a deficit of $473 million, down from $955 million for fiscal year 2007.
The PBGC’s separate insurance program for multiemployer pension plans has about $1.3 billion in assets to cover about $1.8 billion in liabilities. The PBGC does not become trustee of multiemployer plans, but instead offers financial assistance to insolvent plans.
“The PBGC’s lower deficit is good news, although it is important to remember that the deficit number is only a snapshot of where we stood on September 30,” said director Charles E.F. Millard in a news release.
“Successful negotiations with companies in bankruptcy protected workers’ pensions and sliced hundreds of millions of dollars in liabilities off our books. Favorable interest rate changes reduced liabilities, and our careful stewardship of the PBGC’s investments limited losses to 6.5 percent of assets.”