Gov’t pension agency reports $62 billion deficit
WASHINGTON (AP) — The federal watchdog agency overseeing the nation’s retirement pension system says it’s running a $62 billion deficit — almost double last year’s shortfall — mostly due to the poor financial condition of a few large multi-employer pension plans.
The Pension Benefit Guaranty Corporation said in a report Monday that despite an improving economy, plans now protecting the pensions of up to 1 million workers and retirees “are likely to run out of money” in the next 10 years.
Overall, the agency insures pension benefits for more than 41 million workers and retirees.
Agency officials called for Congress to enact legislation submitted by President Barack Obama designed to shore up the program’s finances.
Labor Secretary Thomas Perez said fixing the problem “is vital” to the retirement security of the nation’s middle-class.