Private Pensions:

Most Underfunded Plan Sponsors Are Not Making Additional Contributions

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

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.

Jul 7, 2014

Jun 16, 2014

May 27, 2014

Apr 21, 2014

Mar 5, 2014

Feb 26, 2014

Dec 27, 2013

Dec 17, 2013

Dec 16, 2013

Looking for more? Browse all our products here