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PBGC Blog: Retirement Matters

PBGC will pay retirement benefits for 2,101 people covered by the APL/NVF Consolidated Pension Plan, which is sponsored by the estate of businessman Victor Posner. The estate has interests in about 40 entities that mostly focus on real estate development in Florida, Pennsylvania, and Maryland.

The agency is stepping in because the assets of the Posner estate are being distributed by a Florida Probate Court, and the pension plan will be abandoned. The APL/NVF Consolidated Pension Plan will end as of July 31, 2014.

PBGC will pay all pension benefits earned by the plan's retirees up to the legal limit of about $59,320 a year for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

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Multiemployer graphic reading: What is a Multiemployer Plan? A multiemployer plan is a collectively bargained pension plan involving two or more unrelated employers, usually in a common industry such as construction, supermarket chains, trucking, textiles or coal mining.

PBGC runs two insurance programs that safeguard retirement benefits in different ways.

Lately, you may have heard about multiemployer plans and the financial troubles that some of them are having as described in our Projections Report. Currently, PBGC insures more than 10 million workers and retirees in about 1,400 multiemployer plans.

PBGC doesn't take responsibility for multiemployer plans; instead, we send financial assistance to plans that have run out of money to pay promised benefits. During FY 2013, PBGC paid $89 million in financial assistance to 44 multiemployer pension plans covering the benefits of nearly 50,000 retirees. An additional 21,000 people in these plans will receive benefits when they retire. 

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If you're a participant in a National Steel pension plan, you may have received a communication claiming that PBGC is conducting a general review of the benefit amounts paid to National Steel participants.

Please be assured that this is not the case. PBGC did not send out any such communication, and is not reviewing National Steel benefits.

We are confident that your pension benefit has been determined accurately and that you are receiving the maximum amount you are entitled to under law.

If you have any questions or receive additional false information purporting to come from PBGC, please feel free to contact us at mypension@pbgc.gov or 1-800-400-7242.

Did you recently receive an Annual Funding Notice? Wondering what it means?

Annual Funding Notices keep you (pension plan participants) informed about the financial status of your pension plan.

Now, you're probably wondering why you received the letter. The answer is simple. You received the letter because employers are required to send an Annual Funding Notice each year to everyone covered by their pension plan.

The notice provides you with information about:

  • How well your pension plan is funded
  • The value of your pension plan's assets and liabilities
  • How your pension plan's assets are invested
  • The legal limits on how much PBGC can pay if your pension plan ends

The bottom line is there is no need to panic. The notice does not mean that your pension plan is ending or that PBGC is taking over payment of your benefit. While PBGC insures your pension, the pension plan remains under the sponsorship of your employer. PBGC does not have any specific information about your benefit.

For questions about your funding notice, pension plan, or individual benefit, please contact your pension plan administrator, not PBGC. PBGC only has information about pension plans that have ended. You can find contact information for the pension plan administrator in the annual funding notice or through the employer sponsoring the plan, typically via the human resources office.

Additional information is available on our Annual Funding Notice for Defined Benefit Pension Plans page. 

Constar Logo

PBGC will pay retirement benefits for more than 4,400 current and future retirees of Constar Inc., a plastic container manufacturer based in Trevose, Pa. just outside Philadelphia.

The agency stepped in because the company is selling the majority of its assets in bankruptcy proceedings and the buyer isn't assuming responsibility for the pension plan.

PBGC will pay all pension benefits earned by Constar's retirees up to the legal limit of about $59,320 for a 65-year-old.

Retirees will continue to get benefits without interruption, and future retirees can apply for benefits as soon as they are eligible.

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Race and Retirement Insecurity in the United StatesNew research from the National Institute on Retirement Security (NIRS) examines racial disparities in retirement readiness among working-age Americans and households.

The new report calculates the severity of the U.S. retirement security racial divide. The analysis finds that every racial group faces significant risks, but people of color face particularly severe challenges in preparing for retirement. Americans of color are significantly less likely than whites to have an employer-sponsored retirement plan or an individual retirement account (IRA), which substantially drives down the level of retirement savings.

Some of the key findings include:

1. Workers of color, in particular Latinos, are significantly less likely than White workers to be covered by an employer-sponsored retirement plan—whether a 401(k) or defined benefit (DB) pension.

2. Households of color are far less likely to have dedicated retirement savings than White households of the same age. At the same time, coverage appears to be positively associated with the existence of dedicated household retirement savings in both groups. 

3. Households of color have substantially lower retirement savings than White households, even after controlling for age and income.

Race and Retirement Insecurity in the United States serves as a companion to NIRS' July 2013 study, The Retirement Savings Crisis: Is It Worse Than We Think?, which documented a significant retirement savings gap among working-age households in the U.S.

Read the full NIRS report, Race and Retirement Insecurity in the United States.