WASHINGTON, D.C. — The Pension Benefit Guaranty Corporation (PBGC) today released its Fiscal Year (FY) 2024 Annual Report. The report shows PBGC’s insurance programs are financially sound and continue to grow stronger. This marks the fourth consecutive year of positive net financial positions for both our Single-Employer and Multiemployer insurance programs.
Additionally, this report notes the 32nd consecutive year PBGC has received an unmodified audit opinion on its financial statements and the ninth consecutive year of an unmodified audit opinion on internal control over financial reporting.
PBGC’s Multiemployer Program had a positive net position of $2.1 billion at the end of FY 2024, compared with $1.5 billion at the end of FY 2023, an improvement of nearly $680 million. PBGC’s Single-Employer Program net position grew to $54 billion at the end of FY 2024, up from $45 billion at the end of FY 2023. These results are broadly consistent with PBGC’s recent Projections Reports.
“As PBGC marks its 50th anniversary, our mission is as vital as it was in 1974 with the enactment of ERISA, which also founded PBGC,” said PBGC’s Acting Director Ann Y. Orr. “This report shows that PBGC’s insurance programs continue to strengthen, providing peace of mind for workers and retirees who rely on us. We are proud of our mission and remain fully committed to serving our customers now and into the future.”
Multiemployer Program Continues to Improve
The Multiemployer Program had assets of $4.5 billion and liabilities of $2.3 billion, as of September 30, 2024. The net financial position of the Multiemployer Program improved in FY 2024, to a positive net position of $2.1 billion, compared with the program’s positive net position of $1.5 billion the previous year. The improvement is due primarily to investment income, premium income and a reduction in expected future financial assistance payments.
Estimates from PBGC’s FY 2023 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. As of November 1, 2024, PBGC has approved about $69.5 billion in SFA to financially troubled multiemployer plans that cover about 1.2 million workers and retirees.
During FY 2024, PBGC also provided $163 million in traditional financial assistance to 98 insolvent multiemployer plans covering 62,881 participants receiving guaranteed benefits.
The Multiemployer Program covers approximately 11 million participants in about 1,335 insured plans.
Single-Employer Program Net Position Continues to Grow
The Single-Employer Program had $146 billion in assets and $92 billion in liabilities, as of September 30, 2024, resulting in a positive net position of $54 billion at the end of FY 2024, up from $45 billion from last year. The improvement is primarily the result of strong investment income and premium income in excess of new claims. During FY 2024, PBGC paid $5.8 billion in retirement benefits to over 912,000 retirees in PBGC-trusteed plans.
The Single-Employer Program protects about 19.4 million workers and retirees in about 23,000 insured pension plans.
About PBGC’s FY 2024 Financial Report
PBGC’s financial statements are prepared in accordance with generally accepted accounting principles in the U.S. For FY 2024, 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 about 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.