WASHINGTON, D.C. – The Pension Benefit Guaranty Corporation (PBGC) today released its Fiscal Year (FY) 2023 Annual Report. The report shows continued financial strength in PBGC’s insurance programs.
PBGC’s Multiemployer Program had a positive net position of $1.5 billion at the end of FY 2023, compared with $1.1 billion at the end of FY 2022, an improvement of $400 million. PBGC’s Single-Employer Program remains financially healthy, with a positive net position of $44.6 billion at the end of FY 2023, up from $36.6 billion at the end of FY 2022, an improvement of $8 billion.
“This Annual Report marks three consecutive years of positive net financial positions for both of the agency’s insurance programs,” said PBGC Director Gordon Hartogensis.
Multiemployer Program Continues Positive Trend
The Multiemployer Program had assets of $4 billion and liabilities of $2.5 billion, as of September 30, 2023. The net financial position of the Multiemployer Program improved in FY 2023, to a positive net position of $1.5 billion, compared with the program’s positive net position of $1.1 billion the previous year.
Estimates from PBGC’s FY 2022 Projections Report show the Multiemployer Program is likely to remain solvent for more than 40 years, primarily due to the enactment of the Special Financial Assistance (SFA) Program as part of the American Rescue Plan Act of 2021.
During FY 2023, PBGC also provided nearly $176 million in traditional financial assistance to 100 multiemployer plans covering over 80,000 participants receiving guaranteed benefits.
The Multiemployer Program covers approximately 11 million participants in about 1,360 insured plans.
Single-Employer Program Continues to Improve
The Single-Employer Program had $130.9 billion in assets and $86.3 billion in liabilities, as of September 30, 2023, resulting in a positive net position of $44.6 billion at the end of FY 2023, up from $36.6 billion a year earlier.
During the year, PBGC paid over $6 billion in retirement benefits to nearly 920,000 retirees in PBGC-trusteed plans.
The Single-Employer Program protects nearly 21 million workers and retirees in about 23,500 insured pension plans.
About PBGC’s FY 2023 Financial Report
PBGC’s financial statements are prepared in accordance with generally accepted accounting principles in the U.S. For FY 2023, PBGC received an unmodified audit opinion on its financial statements, as well as an unmodified audit opinion on internal control over financial reporting. Ernst & Young LLP performed the audit under contract with PBGC’s Office of Inspector General, which oversaw the audit. Separately, PBGC publishes a Projections Report each year that illustrates the possible future financial condition of the agency’s two insurance programs.
About PBGC
PBGC protects the retirement security of over 31 million American workers, retirees, and beneficiaries in both single-employer and multiemployer private sector pension plans. The agency’s two insurance programs are legally separate and operationally and financially independent. PBGC is directly responsible for the benefits of nearly 1.4 million participants and beneficiaries in failed single-employer pension plans. The Single-Employer Program is financed by insurance premiums, investment income, and assets and recoveries from failed single-employer plans. The Multiemployer Program is financed by insurance premiums and investment income. Special financial assistance for financially troubled multiemployer plans is financed by general taxpayer monies.