Private Pensions:

Most Underfunded Plan Sponsors Are Not Making Additional Contributions

T-HRD-93-16: Published: Apr 20, 1993. Publicly Released: Apr 20, 1993.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed defined benefit pension plan funding issues. GAO noted that: (1) funding for underfunded plans is not improving, since the number of underfunded plans and the amount of underfunding increased from 1989 to 1991; (2) of 60 underfunded plans sampled, one-third are making additional contributions under an Internal Revenue Code provision, and the remaining plans do not make additional contributions because of offsetting credits or they have not determined whether they have an additional contribution obligation; (3) the failure of plans to determine whether they have an additional contribution obligation may be due to poor enforcement; (4) offsetting credits seriously undermine the effectiveness of the additional contribution provision; and (5) under proposed legislation, 75 percent of the underfunded plans would have their total contributions increased, some by a factor of four, which could prove burdensome to them.

Oct 30, 2014

Oct 22, 2014

Jul 29, 2014

Jul 28, 2014

Jul 7, 2014

Jun 16, 2014

May 27, 2014

Apr 21, 2014

Mar 5, 2014

Looking for more? Browse all our products here