WASHINGTON, D.C. – The Pension Benefit Guaranty Corporation (PBGC) today released its Fiscal Year (FY) 2022 Annual Report. The Multiemployer Program had a positive net position of $1.1 billion at the end of FY 2022, compared to $481 million at the end of FY 2021, an improvement of $577 million. PBGC’s Single-Employer Program remains financially healthy with a positive net position of $36.6 billion at the end of FY 2022, compared to $30.9 billion at the end of FY 2021, an improvement of $5.7 billion.
“For the second year in a row, PBGC’s insurance programs are both reporting positive net financial positions,” PBGC Director Gordon Hartogensis said. “The agency remains committed to implementing the Special Financial Assistance Program and ensuring that millions of America’s workers, retirees, and their families receive the pension benefits they earned through many years of hard work.”
Multiemployer Program Continues to Improve
The Multiemployer Program had assets of $3.5 billion and liabilities of $2.4 billion as of September 30, 2022. The positive net position of $1.1 billion at the end of FY 2022 reflects an improvement of $577 million, compared to $481 million at the end of FY 2021.
The Multiemployer Program — which in the FY 2019 Projections Report was projected to run out of money in FY 2026 — is likely to remain solvent for more than forty years, due to the enactment of the American Rescue Plan Act of 2021 (ARP). In FY 2022, PBGC made significant progress in continuing the successful implementation of the Special Financial Assistance Program (SFA), established under ARP. During FY 2022, PBGC approved 30 applications for $7.6 billion in SFA, all of which were reviewed under the provisions of the SFA interim final rule.
In FY 2022, PBGC provided $226 million in traditional financial assistance to 115 multiemployer plans covering 93,525 participants receiving guaranteed benefits.
Single-Employer Program Continues to Strengthen
The Single-Employer Program had assets of $124.4 billion and liabilities of $87.8 billion as of September 30, 2022. The positive net position of $36.6 billion at the end of FY 2022, reflects an improvement of $5.7 billion, compared to $30.9 billion at the end of FY 2021.
In FY 2022, PBGC paid over $7.0 billion in benefits to more than 960,000 retirees in terminated single-employer plans. PBGC also assumed responsibility for the benefit payments of nearly 8,000 current and future retirees in 32 single-employer plans that were trusteed during FY 2022.
About PBGC’s FY 2022 Financial Report
PBGC’s financial statements are prepared in accordance with generally accepted accounting principles in the U.S. For FY 2022, 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.