Washington • A federal agency says that despite an improving economy, retirement plans covering roughly 1.5 million U.S. workers are severely underfunded, threatening benefit cuts for current and future retirees.
The Pension Benefit Guaranty Corporation says the most at risk are multi-employer plans, which are collectively bargained retirement plans maintained by more than one employer.
At the same time, the agency says financial condition of single-employer pension plans — covering about 30 million participants — are on firmer financial footing and are like to see their finances remain solvent and even improve.
The report concludes that as shaky as the situation is for the underfunded multi-employer plans, the outlook is slightly better than a year ago.
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