The Pension Benefit Guaranty Corporation’s deficit fell to US$18.1 billion in fiscal 2006, down from $22.8 billion last year.
“The PBGC’s financial condition appears to have stabilized for the time being,” says interim director Vince Snowbarger. “Our current assets can cover pension payments coming due for a number of years into the future, and our exposure to additional losses has declined.”
At the end of September, the agency had assets of $60 billion and liabilities of $78.1 billion. It was responsible for the pension benefits of 1.3 million workers and retirees, reflecting no net change from 2005.
Total underfunding of insured single-employer plans decreased to approximately $350 billion, compared to an estimated $450 billion in 2005.
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