PBGC Releases Fiscal Year 2022 Projections Report

The Pension Benefit Guaranty Corporation (PBGC) released its Fiscal Year (FY) 2022 Projections Report. The new projections show that the Multiemployer Program is likely to remain solvent for more than 40 years, with a median projected insolvency after 2062, the end of the projection period. Prior to enactment of the American Rescue Plan’s Special Financial Assistance (SFA) Program, the PBGC projected that its Multiemployer Program would become insolvent in 2026.
 
PBGC explains that the projected financial condition of the Multiemployer Program is modestly improved from last year’s report because plan asset losses in 2022 were more than offset by the significant increase in expected future plan asset returns due to the sharp rise in interest rates during 2022.