Private Pensions : Recent Experiences of Large Defined Benefit Plans Illustrate Weaknesses in Funding Rules

Recent terminations of large underfunded pension plans, along with continued widespread underfunding, suggest weaknesses in pension funding rules that may threaten retirement incomes of these plans' participants, as well as the future viability of the Pension Benefit Guaranty Corp. (PBGC) single-employer insurance program. This report examines: (1) the recent funding & contribution experience of the nation's largest private defined benefit plans; (2) the funding & contribution experience of large underfunded plans, & the role of the additional funding charge; & (3) the implications of large plans' recent funding experiences for PBGC, in terms of risk to the agency's ability to insure benefits. Charts & tables.Bovbjerg, Barbara is the author of 'Private Pensions : Recent Experiences of Large Defined Benefit Plans Illustrate Weaknesses in Funding Rules', published 2005 under ISBN 9781422302309 and ISBN 142230230X.