Multiemployer Pension Plans Continue to Experience Shortfall
In an annual report by the Pension Benefit Guaranty Corporation (“PBGC”), the agency addressed the current state of multiemployer pension plans. According to the FY 2013 Projections Report, despite the stock market’s recent gains and an improving economy, multiemployer plans are rapidly deteriorating and labor union-sponsored plans have become underfunded. Facing a severe shortfall, the PBGC projects over a million of the 10.4 million workers in multiemployer plans could lose their benefits. Responsible for covering benefits in failed pension plans, the PBGC guarantees the single-employer and multiemployer insurance programs. While the finances for 23,000 single-employer plans are expected to improve. Read More.