PBGC Report Re-Enforces Need for PBIA Passage and Multiemployer Pension Reform

For Immediate Release

Washington, DC – The ERISA Industry Committee (ERIC) believes today’s release of the Pension Benefit Guaranty Corporation’s (PBGC) 2019 Annual Report is further proof that there is a need for the passage of the Pension and Budget Integrity Act (PBIA) and for Multiemployer Pension Reform.

ERIC is pleased the PBGC report shows that the single-employer defined benefit system continues to increase its funding levels, leading to a $8.7 billion surplus on the PBGC single-employer program. This surplus underscores ERIC’s push for the PBIA which will stop Congress from using the single-employer pension system as a piggy bank for government spending unrelated to the retirement system. Now that the single-employer system is on secure footing, Congress should be working to ensure its continued success and not creating laws that will discourage future participation by employers.

Unfortunately, but not surprisingly, the story of the multiemployer plan program is not positive. As ERIC has repeatedly warned, the escalating funding problems in the multiemployer plan system will have devasting consequences if a workable solution is not found. The first of such consequences is the $65.2 billion in the multiemployer insurance program and the impending bankruptcy of that program by 2025.

“Congress can no longer stall on taking action to address this crisis that will affect 1.5 million American workers and retirees. This report should prompt Congress to pursue real and workable solutions immediately,” said Aliya Robinson, Senior Vice President of Retirement and Compensation Policy, ERIC.

ERIC will continue to advocate for passage of the Pension Budget Integrity Act to remove the budget gimmick currently in place that gives Congress incentive to raise premium rates even though a rate increase in not necessary. We will also continue to advocate against any legislation that would split premiums between large and small employers. Furthermore, ERIC will continue to work with Congress on multiemployer pension reform.

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All media inquiries to The ERISA Industry Committee should be directed to:

Kelly Broadway, 202.627.1918, kbroadway@eric.org

About the ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.