Report: Private pension plans in danger of becoming insolvent in less than a decade

A report issued by the Pension Benefit Guarantee Corporation (PBGC) is warning that unless reforms are made to private, multi-employer pension plans, many of them could become insolvent by 2025. Washington Examiner:   The problem is simple: Too many of the plans have not been adequately funded. "While multi-employer plans are typically less well funded than single-employer plans, most multi-employer plans are projected to remain solvent over the next 20 years. However, a core group of plans appears unable to raise contributions sufficiently to avoid insolvency," the report said. An estimated 14,000 multi-employer plans cover 10 million people in the U.S. The multi-employer pension system is funded at only 41 percent, which translates to an estimated $610 billion in unfunded liabilities, according to the House Education and the Workforce Committee.   Rep. John Kline, R-Minn, chairman of the House Education and Workforce Committee, said the...(Read Full Post)