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PBGC ISSUES ANNUAL REPORT FOR FISCAL YEAR 1992

 WASHINGTON, Feb. 18 /PRNewswire/ -- In its 18th Annual Report, released today, the Pension Benefit Guaranty Corporation (PBGC) reported losses to the federal pension insurance program totalling $825 million from completed and probable terminations of underfunded defined benefit pension plans in 1992. These losses, along with actuarial charges, were largely offset by record premium and investment income. Still, the deficit of PBGC's single-employer pension insurance program increased from $2.5 billion at the end of 1991 to about $2.7 billion at the end of 1992, based on assets of $6.3 billion and liabilities of nearly $9 billion.
 The deficit reflects PBGC's long-term obligations and represents the total value of the benefits PBGC is committed to pay net of current assets. Revenue from premiums and investment income was greater than the amount of total benefits paid during the year.
 As a whole, the pension plans insured by PBGC remain well-funded, having assets of over $1 trillion and liabilities of approximately $900 billion. However, underfunding persists among a significant minority of plans. Those plans that are not fully funded have an estimated $51 billion in underfunding, with assets of $163 billion and liabilities of $214 billion. This represents 28 percent more underfunding than was reported in 1991.
 Moreover, as falling interest rates have increased plan liabilities and underfunding, they also have worked in tandem with the full funding limit enacted in 1987 to reduce the overall overfunding in single-employer plans. As a result, total overfunding has fallen from a peak of $251 billion in 1990 to $183 billion in 1991. Underfunding in single-employer plans has grown to the current level of about $40 billion from $18 billion in 1982.
 PBGC paid a record $636 million in benefits, an increase of 23 percent from 1991, to about 152,000 retirees. Including participants who have not yet retired, about 424,000 people receive or are likely to receive benefits through PBGC's insurance. PBGC has or will become trustee for 1,770 terminated pension plans.
 PBGC has two insurance programs, which are funded and administered separately. The combined results of both programs produce a total deficit of about $2.4 billion, with total assets of about $6.6 billion and liabilities of more than $9 billion.
 The multi-employer plan insurance program showed continued financial gains, with net income of $48 million increasing the program's accumulated surplus to $235 million. By year-end, program assets had grown 19 percent to $302 million, while liabilities remained unchanged at $67 million.
 PBGC is a federal corporation created under Title IV of the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by more than 41 million American workers and retirees participating in private-sector defined benefit pension plans. PBGC insures about 67,000 single-employer and multi- employer pension plans.
 -0- 2/18/93
 /CONTACT: Judith E. Bekelman, director, communications & public affairs, or Joel Greenblatt, public affairs specialist, both of Pension Benefit Guaranty Corporation, 202-778-8840/


CO: Pension Benefit Guaranty Corporation ST: District of Columbia IN: FIN SU:

IH-TW -- DC032 -- 7902 02/18/93 12:36 EST
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Publication:PR Newswire
Date:Feb 18, 1993
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