US pension insurer posts record deficit for FY2015
If the trend continues, some experts say the agency could need an infusion of taxpayer funds to pay retirees, who are guaranteed their pensions by law.
[...] the agency said, the risk of its multi-employer program running out of money declined because of increased insurance premiums paid by multi-employer plans.
The PBGC was created in 1974 as a government insurance program for traditional employer-paid pension plans, which have become much less common in recent decades as most employers turn to retirement accounts such as 401(k)s. The traditional plans are most prevalent in industries such as auto manufacturing, steel and airlines.
If an employer can no longer support its pension plan, the PBGC takes over the assets and liabilities, and pays promised benefits to retirees up to certain limits.