The Pension Benefit Guaranty Corporation (PBGC) recently released its Fiscal Year 2019 Annual Report. The PBGC acts as an insurer and guarantees a pension benefit to retirees if their pension plan should be unable to pay benefits. The report notes a record deficit of $65.2 billion in its Multiemployer Insurance Program at the end of Fiscal Year 2019. The Multiemployer Program will likely be insolvent by 2025 based on the current numbers, which would leave 10.8 million Americans without significant retirement benefits should their pension plans fail.
In the Senate, Senators Chuck Grassley and Lamar Alexander have introduced the Multiemployer Pension Recapitalization and Reform Plan, a proposal to strengthen struggling multiemployer pension plans and the PBGC. While the proposal is still in the early stages, it would implement a series of reforms meant to stabilize the pension system and overcome the current underfunding crisis affecting both multiemployer pension plans and the PBGC itself.