We are proud to present our fourth annual report on the PBGC Premium Burden, a comprehensive analysis of the experience of roughly 5,000 US pension plans. Since 2008, single-employer plan sponsors have paid a stunning $46 billion in PBGC premiums.
For thousands of pension sponsors, sound pension management has become, in large part, management of PBGC premiums. But many plan sponsors continue to pay much more in PBGC premiums than they should. In fact, our research shows that employers have paid $525 million more in premiums than they needed to since 2011. Missed savings in 2018 alone were $40 million. And these missed opportunities were completely avoidable.
Most employers have taken steps to manage this growing burden by settling liabilities (lump sum offers and annuity purchases) and making voluntary contributions. We expect these trends to continue, and perhaps accelerate, in 2020.
Click here to download the full report.