About PBGC

Pensions Need a Makeover

| March 22, 2012

Defined benefit pensions provide lifetime retirement security, but need to be updated for today’s workforce. PBGC Director Josh Gotbaum talked about his ideas at a recent forum sponsored by Institutional Investor magazine. Here’s a March 20 report from the magazine’s Investor Intelligence Network website: More...

PBGC Wins One for Metaldyne Retirees

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| March 16, 2012

A court decision this week will help PBGC keep employers accountable for pension plans, even when the employer is foreign-owned.

In 2007 Japanese company Asahi Tec bought Metaldyne, a Michigan auto parts maker. When Metaldyne went bankrupt in 2009, we asked Asahi Tec to step up and assume the pensions of Metaldyne’s 10,000 workers and retirees. Asahi Tec refused. More...

We've Got Them Covered

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| March 15, 2012

Since 1872, Christ Hospital has provided health care services to Hudson County, N.J. Like many hospitals around the country during the recent financial downturn, Christ Hospital saw growing numbers of uninsured and charity patients come through its doors. People got the care they needed, but at the expense of the hospital’s bottom line. Finally, mounting financial losses, combined with state budget cuts and other reverses, forced the hospital to seek bankruptcy protection.

Fortunately, the hospital will continue to serve the community under a new owner. But what about the pensions of the 2,500 caregivers and other staff? Well, PBGC has got them covered. More...

Retirement Security: It Takes More Than Saving

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| March 12, 2012

It’s time to face retirement realities, PBGC Director Josh Gotbaum writes in the March 11 issue of Long Island’s Newsday.

People will need to save more for longer retirements, but that’s not enough. Gotbaum calls for new pension options that share responsibility between employers and employees.

Read Don't ignore retirement insecurity.

Good News: AMR to Keep Most Pensions

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| March 7, 2012

Today marked a big victory for American Airlines’ workers and retirees. American has reversed course and decided to keep the pension plans of its non-pilot employees. The pension plans will be frozen, which means that workers won’t earn additional benefits going forward. But they’ll get every dime of the benefits they’ve already earned. When companies terminate plans, many people see pension cuts because of legal limits on the amount PBGC is allowed to pay. Here’s what PBGC Director Josh Gotbaum had to say: “It is great progress and good news that American recognizes it can reorganize successfully and preserve its employees’ pension plans. We’re also glad the company is willing to work with us to preserve their pilot plan too.”

The Fight to Save Pensions at American Airlines

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| March 6, 2012

On February 1, 2012, American Airlines announced it would seek to terminate all four of its pension plans. But the law is clear: If the company wants to end the plans, it must prove its case.

Here’s a fact sheet that clears up some big misconceptions: http://www.pbgc.gov/wr/other/pg/american-airlines-pensions--get-the-facts.html

Here’s a Chicago Tribune story based on an interview with PBGC Director Josh Gotbaum: Pension insurer doubts need of American Airlines parent to terminate defined benefit plans