The Pension Benefit Guaranty Corporation (PBGC), which provides a backstop for pension plans in the United States, has reported new numbers showing a healthy balance sheet and general strength in the federal agency going forward.

The PBGC's annual report outlines the financials of its Multiemployer Program and Single-Employer Program. The agency reported a positive net position of $1.5 billion at the end of the fiscal year, compared with $1.1 billion in 2022. "This Annual Report marks three consecutive years of positive net financial positions for both of the agency's insurance programs," said PBGC director Gordon Hartogensis.

A Rocky History, Recent Improvements

The agency was founded in 1974 by the Employee Retirement Income Security Act (ERISA) to provide members of private pension plans with guaranteed "basic" benefits in the event that their employer-sponsored defined-benefit plans became insolvent—which has happened a number of times. The PBGC does not cover defined-contribution plans, such as 401(k)s or 403(b)s.