Pennsylvania ranks first in nation in PBGC benefit payments
FOR IMMEDIATE RELEASE
May 27, 2005
WASHINGTON-Pennsylvania residents last year received more than $514 million in benefits from the Pension Benefit Guaranty Corporation (PBGC), according to the latest edition of the PBGC's Pension Insurance Data Book. The state ranks first in the nation both in total amount of PBGC benefits (see chart) and in number of recipients.
More than 78,000 Pennsylvanians received their pension check from the federal insurer in 2004. The PBGC's single-employer pension insurance program, which assumes the benefit promises of failed company pension plans, paid out about $3 billion nationwide to 533,000 retirees. Benefits to Pennsylvanians comprised about 17 percent of total payments.
2004 PBGC Benefit Payments by State (Top 5)
In addition to keeping the promises of failed plans, the PBGC insures almost 2,000 ongoing Pennsylvania-based pension plans, covering 1.7 million individuals.
The PBGC's state-by-state data is one of the many features of the Pension Insurance Data Book, an annually updated statistical reference that tracks the experience of PBGC's insurance programs and the defined benefit pension plans they protect. The Data Book provides researchers, journalists and others interested in the federal pension insurance program with easily accessible, detailed statistics for PBGC's two separate programs covering single-employer and multiemployer plans. For both of PBGC's insurance programs, the book includes graphs and tables on the financial condition of the program, numbers of people and plans protected by the program, the people receiving or eligible to receive benefits from PBGC and the benefits paid to them, claims against the program, and other vital statistics.
PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by workers. Its two insurance programs cover nearly 44.3 million American workers and retirees participating in more than 31,000 private-sector defined benefit pension plans, including some 1,600 multiemployer plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and investment returns.
— ### —
PBGC No. 05-41