The net financial position of the single-employer insurance program weakened
for the first time in eight years, largely due to losses from plan terminations
and equity investments. While the net position declined by $2.0 billion, the
program remained financially sound as assets exceeded liabilities by more than
$7.7 billion at year-end.
Subsequent to September 30, 2001, when PBGC trustees the LTV pension plans,
it will experience the largest single loss (over $1 billion) in its history.
PBGC continues to face significant exposure from troubled companies with underfunded
pension plans, especially in the steel, airline and retail sectors.
PBGC entered a new phase of customer service as it took the first steps to establish
fully electronic business transactions. The Corporation's staff responded to
a growing workload with markedly increased production of benefit determinations
and benefit estimates.
PBGC paid more than $1 billion in benefits to 268,600 people during the year,
the first year in its history benefit payments topped $1 billion. PBGC is responsible
for the pensions of 624,000 participants, including those who will receive benefits
when they retire in the future. The Corporation further reduced the average
time needed to issue final benefit determinations, meeting its annual performance
target.
PBGC has or will become trustee of 2,975 underfunded pension plans, including
101 terminated during the year.
In fiscal year 2001, PBGC became trustee of 104 terminated single-employer plans
covering nearly 89,000 people. This represented the insurance program's largest
one-year increase in the population of plan participants owed guaranteed benefits.
In fiscal year 2002, PBGC projects about 180,000 new participants, more than
double last year's record, as a result of the LTV Steel plans and other terminations.
Premium income increased slightly, to $845 million, reversing a downward trend
dating back to 1996.
The multiemployer program remained financially sound despite a net loss of $151
million, due to an increased allowance for future losses. The net position declined
from $267 million to $116 million.
PBGC's annual performance report describes gains in both productivity and customer
satisfaction.
Table - Financial and Operational Highlights
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