Pension plans for 1.5M on shaky ground
WASHINGTON — Despite an improving economy, retirement plans covering about 1.5 million workers are severely underfunded, threatening benefit cuts for retirees, a federal watchdog agency warned on Monday.
The Pension Benefit Guaranty Corporation said multi-employer plans, which are collectively bargained retirement plans maintained by more than one employer, are most at risk. “Plan insolvencies ... are now both more likely and more imminent than in our last report,” the report said.
At the same time, the agency said single-employer pension plans — covering just more than 30 million participants — are on firmer financial footing and are likely to remain so at least during the next 10 years.
The report concluded that the outlook is slightly better than it was a year ago as the nation's economy gradually improves from the severe 2007-09 recession.
“In the past year, economic conditions have improved significantly, and most plans are projected to remain solvent,” said the agency, which was established under the Employee Retirement Income Security Act of 1974.
But, it added, that research during the past year had made clear that, for some multi-employer plans, “even the improving economy will not be sufficient to maintain their solvency.”
Show commenting policy
TribLive commenting policy
- New York farmers lament lost opportunity for natural gas riches with fracking ban
- Police: NYC cop killer invited people to watch shooting
- Gray wolf decision reversed
- Coal mines near record low in worker deaths
- WikiLeaks releases purported CIA documents on operatives’ travel
- Dr. Oz no wizard, fact-checkers say in study showing evidence doesn’t back claims
- Sony bows to threats, cancels Dec. 25 release of ‘The Interview’
- Document hunt to begin for illegals who need proof of residency since 2010 for permit, reprieve
- Obama says Sony hack not an act of war
- Obama fires back on foreign policy on Cuba, Russia
- Georgia prosecutor Yates tapped for No. 2 post in Justice Department