Pension Agency Reports Bigger Loss In Multiemployer Insurance Program
The Pension Benefit Guaranty Corp., which insures retirement plans covering 44 million workers and retirees, says the net loss for its multiemployer-plan program widened significantly in fiscal year 2006. It also reports that multiemployer plans, which cover millions of retirees and workers in construction and other industries, remain severely underfunded, though there was improvement from 2005.
In its annual management report, sent to Congress Nov. 15, the PBGC said its multiemployer-plan insurance program recorded a net loss of $404 million in fiscal 2006, compared with a $99-million loss in 2005. The agency said its aid to multiemployer plans rose by $257 million, offset only partly by a $32-million increase in premium revenue.