The net financial position of the single-employer insurance program weakened for the first time in eight years, largely due to losses from plan terminations and equity investments. While the net position declined by $2.0 billion, the program remained financially sound as assets exceeded liabilities by more than $7.7 billion at year-end.

Subsequent to September 30, 2001, when PBGC trustees the LTV pension plans, it will experience the largest single loss (over $1 billion) in its history. PBGC continues to face significant exposure from troubled companies with underfunded pension plans, especially in the steel, airline and retail sectors.

PBGC entered a new phase of customer service as it took the first steps to establish fully electronic business transactions. The Corporation's staff responded to a growing workload with markedly increased production of benefit determinations and benefit estimates.

PBGC paid more than $1 billion in benefits to 268,600 people during the year, the first year in its history benefit payments topped $1 billion. PBGC is responsible for the pensions of 624,000 participants, including those who will receive benefits when they retire in the future. The Corporation further reduced the average time needed to issue final benefit determinations, meeting its annual performance target.

PBGC has or will become trustee of 2,975 underfunded pension plans, including 101 terminated during the year.

In fiscal year 2001, PBGC became trustee of 104 terminated single-employer plans covering nearly 89,000 people. This represented the insurance program's largest one-year increase in the population of plan participants owed guaranteed benefits. In fiscal year 2002, PBGC projects about 180,000 new participants, more than double last year's record, as a result of the LTV Steel plans and other terminations.

Premium income increased slightly, to $845 million, reversing a downward trend dating back to 1996.

The multiemployer program remained financially sound despite a net loss of $151 million, due to an increased allowance for future losses. The net position declined from $267 million to $116 million.

PBGC's annual performance report describes gains in both productivity and customer satisfaction.

Table - Financial and Operational Highlights

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