The PBGC has issued this report–“Companies Report $278.6 Billion Pension Shortfall in Latest Filings with PBGC“–providing an update on the status of underfunded pension plans:
Companies with underfunded pension plans reported a total pension shortfall of $278.6 billion in the latest round of filings with the Pension Benefit Guaranty Corporation (PBGC), the agency reported today. That is down slightly from the $305.9 billion reported last year, but up dramatically from the $18.4 billion reported in 1999.
View a chart entitled “Summary of Pension Underfunding Filings” here. It is important to note that the figures only include those companies with more than $50 million in underfunded pension liabilities. The announcement states that “[i]f underfunding in all insured pension plans is included . . . the total shortfall in the defined benefit pension system is significantly higher than $278.6 billion.”
Reuters has an article here. Quote of Note:
U.S. companies with pension underfunding of more than $50 million at the end of 2003 were required to file special reports to the agency by April 15, giving details of the shortfalls. While the reports are confidential, the agency is allowed to release the aggregated data to the public.Usually the agency waits months to release the information, but its new director Brad Belt decided it should go out now, while Congress and the Bush administration are discussing possible reforms to the pension system.
“Workers and investors have a right to know the financial status of pension plans,” Belt said in a statement.