PBGC Issues 2022 Annual Report Showing Finances Continue to Improve

The Pension Benefit Guaranty Corporation (PBGC) released its Fiscal Year (FY) 2022 annual report showing, for the second year in a row, PBGC’s insurance programs are both reporting positive net financial positions. 

The Multiemployer Insurance Program had assets of $3.5 billion and liabilities of $2.4 billion as of September 30, 2022. The positive net position of $1.1 billion at the end of FY 2022 reflects an improvement of $577 million, compared to $481 million at the end of FY 2021.

The Multiemployer Program is likely to remain solvent for more than 40 years, due to the enactment of the American Rescue Plan Act (ARPA) of 2021 and implementation of the Special Financial Assistance Program (SFA), established under ARPA. 

In FY 2022, PBGC provided $226 million in traditional financial assistance to 115 multiemployer plans covering 93,525 participants receiving guaranteed benefits. 

The financial position of the single-employer program continues to strengthen. The Single-Employer Program had assets of $124.4 billion and liabilities of $87.8 billion as of September 30, 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. In FY 2022, PBGC paid over $7.0 billion in benefits to more than 960,000 retirees in terminated single-employer plans. 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 FY 2022.