US The US government agency that insures the defined benefit pensions of private sector workers is facing a $33.5bn deficit, the largest in its history, following a surge of insolvencies among companies with underfunded pension schemes.
As of March 31, the agency’s shortfall had roughly trebled from its level at the end of the last fiscal year in September, Vince Snowbarger, acting director of the Pension Benefit Guarantee Corporation, said in testimony prepared for the Senate special committee on ageing. About half the increase came from underfunded plans it has either taken over or expects to take over shortly.
