Underfunded Pension Plans:

Federal Government's Growing Exposure Indicates Need For Stronger Funding Rules

T-HEHS-94-149: Published: Apr 19, 1994. Publicly Released: Apr 19, 1994.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed its ongoing study of current pension plan funding rules and the impact of proposed pension reform legislation on underfunded plans insured by the Pension Benefit Guaranty Corporation (PBGC). GAO noted that: (1) underfunding in PBGC-insured single-employer plans increased from $31 billion in 1990 to over $50 billion in 1992; (2) current law provides for an offset that either completely eliminates or significantly reduces requirements that sponsors of underfunded plans make additional funding contributions; (3) H.R. 298 would require even fewer plan sponsors to make additional but significantly larger funding contributions; (4) H.R. 3396 would increase the number of sponsors required to make additional contributions and also increase the contribution amount; (5) a solvency rule, actuarial restrictions, and increased deficit reduction contributions included in H.R. 3396 could also increase contributions for underfunded plans; and (6) H.R. 3396 should be strengthened further to ensure that more sponsors of underfunded plans make additional contributions.

May 5, 2016

Apr 13, 2016

Apr 4, 2016

Mar 1, 2016

Oct 29, 2015

Oct 27, 2015

  • retirement icon, source: PhotoDisc

    Social Security's Future:

    Answers to Key Questions
    GAO-16-75SP: Published: Oct 27, 2015. Publicly Released: Oct 27, 2015.

Sep 30, 2015

Sep 29, 2015

Sep 4, 2015

Jun 15, 2015

Looking for more? Browse all our products here