Private Pension System Faces Variety of Challenges
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Private Pension System Faces Variety of Challenges
In total, only about half the private labor force covered by pensions
Defined Benefit System
- Long term decline in number of plans, active participants
- Recent large plan terminations by bankrupt sponsors threaten solvency of the Pension Benefit Guaranty Corporation, the federal agency that insures benefits
- Stock market and interest rate declines reduced overall plan funding levels
- Demographics and industry restructuring (steel, airlines) have contributed to both plan and corporate weakness
