PENSION INSURANCE

DATA BOOK 1996 

PBGC Single-Employer Program
Table of Contents

INTRODUCTION

Overview ............................................................................................... 1

Figure 1: PBGC Net Position ...................................................................... 2 A-1

SECTION 1: BENEFITS AND CLAIMS IN PLANS TERMINATED UNDER

PBGC’S SINGLE-EMPLOYER INSURANCE PROGRAM

Benefits and Claims in Terminated Plans

Figure 2: Participants and Beneficiaries Receiving PBGC Payments........ 4 A-2

Figure 3: Participants and Beneficiaries Receiving PBGC Payments ...........

by State, 1996............................................................................................. 5 A-3

Figure 4: Participants and Beneficiaries Receiving PBGC Payments ...........

by Industry of Plan Sponsor........................................................................ 6 A-4

Figure 5: Participants and Beneficiaries Receiving PBGC Payments...........

by Gender and Age, 1996 ........................................................................... 7 A-5

Figure 6: Monthly Pension Payments by Size of Payment, 1996 ................ 8 A-6

Figure 7: Total PBGC Benefit Payments ..................................................... 9 A-7

Figure 8: Underfunded Plans Among Publicly Traded Bankrupt ...................

Firms, 1980-1994 ..................................................................................... 10 A-8

Figure 9: Standard Terminations ............................................................... 11 A-9

Figure 10: Claims ......................................................................................12 A-10

Figure 11: Concentration of Claims .......................................................... 13 A-10

Figure 12: Claims by Funded Ratio at Termination, 1975-1996 ............... 14 A-11

Figure 13: Average Claim per Vested Participant by Plan Size................. 15 A-12

SECTION 2: PENSIONS PROTECTED BY PBGC’S SINGLE-EMPLOYER

INSURANCE PROGRAM

Pensions Protected by PBGC’s Single-Employer Insurance Program

Figure 14: Covered Participants by Plan Size........................................... 17 A-13

Figure 15: PBGC-Insured Plans ............................................................... 18 A-14

Figure 16: PBGC-Insured Plans With 1,000 or More Participants ............ 19 A-14

Figure 17: PBGC-Covered Participants by State, 1996 ............................ 20 A-15

Figure 18: PBGC-Covered Participants by Industry, 1996 ........................ 21 A-16

Figure 19: Coverage by Funding Status, 1996 ......................................... 22 A-17

Figure 20: Distribution of Participants by Premium Paid, 1996 ................. 23 A-18,

................................................................................................ A-19

Figure 21: Premium Revenue ................................................................... 24 A-20

Figure 22: Liabilities of Insured Plans and Interest Rates......................... 25 A-21

Figure 23: Underfunding and Interest Rates ............................................. 26 A-22

Figure 24: Underfunding by Industry.........................................................27 A-23

Figure 25: Concentration of Underfunding ................................................ 28 A-24

Figure 26: Status of Overfunded Plans ..................................................... 29 A-25

REFERENCE

PAGE TABLE
Appendix A: Reference Tables

Table A-1: Net Financial Position of PBGC’s Single-Employer Program Figure 1

(1980-1996)

Table A-2: Benefit Payments, Payees, and Deferred Payees Figure 2

(1980-1996)

Table A-3: PBGC Payees Receiving Payments by State (1996) Figure 3

Table A-4: PBGC Payees by Industry (1987 and 1996) Figure 4

Table A-5: PBGC Payees by Gender and Age (1996) Figure 5

Table A-6: PBGC Pensions by Size (1996) Figure 6

Table A-7: Payees and Benefit Payments by Date of Plan Termination Figure 7

(1996)

Table A-8: Bankruptcies and Underfunding Among Figure 8

Publicly Traded Firms (1980-1994)

Table A-9: PBGC Terminations, Claims, and Underfunding (1975-1996) Figure 9

Table A-10: PBGC Claims (1975-1996) Figure 10,

Figure 11

Table A-11: PBGC Claims by Plan Funded Ratio at Termination Figure 12

(1975-1996)

Table A-12: PBGC Average Claim per Vested Participant by Plan Size Figure 13

(1975-1996)

Table A-13: PBGC-Covered Participants (1980-1996) Figure 14

Table A-14: PBGC-Insured Plans (1980-1996) Figure 15,

Figure 16

Table A-15: Distribution of Covered Participants by State (1996) Figure 17

Table A-16: Distribution of Covered Participants, Premiums, Figure 18

and Plans by Industry (1987 and 1996)

Table A-17: PBGC Coverage by Funding Status (1996) Figure 19

Table A-18: Distribution of Participants by Total Premium Paid (1996) Figure 20

Table A-19: Premium Receipts by Size of Plan and Type of Premium Figure 20

(1996)

Table A-20: PBGC Premium Revenue, Benefit Payments, Figure 21

and Expenses (1980-1996)

Table A-21: Funding of Insured Plans and PBGC Interest Rates Figure 22

(1980-1996)

Table A-22: Financial Status of Underfunded Plans (1980-1996) Figure 23

Table A-23: Funded Status of PBGC-Insured Plans by Industry Figure 24

(1987 and 1996)

Table A-24: Concentration of Underfunding (1989-1996) Figure 25

Table A-25: Financial Status of Overfunded Plans (1980-1996) Figure 26
Appendix B: Data Tables

Table B-1: Payees and Benefit Payments by Size of Trusteed Plan (1996)

Table B-2: Top 10 Firms Presenting Claims (1985-1996)

Table B-3: PBGC Claims by Industry (1975-1996)

Table B-4: Distribution of Liabilities, Underfunding, and

Overfunding by Funding Ratio (1996)

Table B-5: Top 50 Companies with the Largest Unfunded Pension Liability

(1996)

Table B-6: Pension Funding by State and Region (1996)

Table B-7: Pension Data by State and Region (1996)

Table B-8: PBGC Maximum Guaranteed Benefits

Table B-9: PBGC Premium Schedule
PENSION INSURANCE DATA BOOK 1996 SECTION 1 1

Overview

Pension Benefit Guaranty Corporation (PBGC) was established by the Employee

Retirement Income Security Act of 1974 to ensure that participants in private sector

defined benefit plans receive their pensions even if their plans terminate without

sufficient assets to pay promised benefits. Separate insurance programs protect participants in single-employer and multiemployer pension plans.

The Pension Insurance Data Book 1996 provides detailed statistics on the singleemployer program and concentrates on the areas of program operations and benefit

protection.

In 1996, the single-employer insurance program reported a surplus for the first time

in its history. Recent legislative changes, as well as favorable financial experience and low

losses from plan terminations, were key contributors to the improved status of the singleemployer insurance program.

The first section on benefits and claims presents information on the number and

value of pensions in underfunded terminated plans for which PBGC has assumed responsibility under the single-employer program. The second section describes ongoing

single-employer plans insured by PBGC against the risk of future termination.

Appendix A contains the reference tables that support the graphical illustrations

presented in sections one and two. Appendix B provides supplemental data tables

relevant to the other aspects of the single-employer program and PBGC operations.

INTRODUCTION
2 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Net Financial Position of PBGC’s

Single-Employer Program

• In 1996, for the first time, PBGC eliminated the deficit in its single-employer

insurance program and reported a surplus.

• The surplus in 1996 was $869 million. The highest deficit, reported by PBGC in

1993, was $2.9 billion.

Figure 1

PBGC Net Position

PBGC Net Position is the difference (with some adjustments) between the PBGC’s total assets and liabilities. The net position is

affected by the number and size of claims, premium revenues and interest rates.

The originally reported $3.8 billion deficit in 1986 decreased after a Supreme Court ruling restored three pension plans and

returned their pension obligations of $1.8 billion to LTV Corporation.

Reference Table A-1 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

-$5

-$4

-$3

-$2

-$1

$0

$1

$2

$3

$4

Fiscal Year

Dollars in Billions

(Restored LTV Plans)

INTRODUCTION
SECTION ONE

Benefits and Claims in Terminated Plans
PENSION INSURANCE DATA BOOK 1996 SECTION 1 3

Section 1: Benefits and Claims in Plans

Terminated Under PBGC’s Single-Employer

Insurance Program

Most pension plans terminate without requiring PBGC’s assistance. These pension

plans have sufficient assets to pay all benefits. PBGC audits a sample of these standard

terminations each year to ensure that benefits are properly paid.

For every 100 standard terminations, there are one or two distress or involuntary

terminations. When this occurs, the sponsoring firms are often in serious financial

trouble and their plans have developed considerable underfunding. In a typical plan

taken over by PBGC, assets are frequently less than 50 percent of liabilities. PBGC

becomes trustee of these plans and participants receive their benefits directly from

PBGC. These benefits are subject to maximum guarantee limits. For plans terminated

in 1997, the monthly guarantee limit is $2,761 for persons retiring at age 65 or later.

PBGC paid benefits to almost 200,000 participants and beneficiaries in 1996. An

additional 240,000 are in deferred pay status. This represents less than one and one-half

percent of all participants covered in ongoing plans.

The first set of graphs in this section describes the characteristics of participants and

beneficiaries to whom PBGC has responsibility for paying benefits. A general upward

trend is evident, reflecting the cumulative effect of terminations over time. Once participants and beneficiaries enter PBGC rolls, they generally remain PBGC’s responsibility

until they and any surviving spouses die.

The second set of graphs describes PBGC’s claims experience. It reveals the

unpredictability of pension insurance and the need for PBGC to build reserves to handle

infrequent but large claims.

Most claims tend to be small and can be handled without significant financial impact

on PBGC. Over its history, however, the agency has experienced several large claims

resulting from either an individual plan sponsor experiencing financial distress or a group

of employers in an industry encountering difficulties, or both. Overall, ten large claims

account for more than half of the total dollar amount of claims paid since PBGC began

in 1974.
4 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Participants and Beneficiaries Receiving

PBGC Payments

• PBGC’s responsibility for paying pension benefits has increased substantially.

• In 1996, PBGC made periodic payments to almost 200,000 payees and small lump

sum payments to more than 7,000 participants. Another 240,000 individuals are

eligible for future PBGC benefit payments.

Figure 2

Participants and Beneficiaries Receiving PBGC Payments

Note: Payees are retired participants or their beneficiaries.

Reference Table A-2 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

0

50

100

150

200

250

Fiscal Year

In Thousands

Deferred Status Pay Status
PENSION INSURANCE DATA BOOK 1996 SECTION 1 5

Participants and Beneficiaries Receiving

PBGC Payments by State

• Participants and beneficiaries receiving PBGC payments live in every state.

• In 1996, more than half of all PBGC payments were made to individuals in the seven

states with the largest populations over age 65.

 Figure 3

Participants and Beneficiaries Receiving PBGC Payments

by State, 1996

Reference Table A-3 in Appendix A.

ALASKA

IDAHO

OREGON

WASHINGTON

MONTANA

WYOMING

UTAH

COLORADO

ARIZONA

NEW MEXICO

OKLAHOMA

KANSAS

NEBRASKA

SOUTH DAKOTA

NORTH DAKOTA

IOWA

IN

KENTUCKY

WV

MS ALABAMA

ARKANSAS

LA

NEVADA

MAINE

TENNESSEE

SO.

CAROLINA

MD

DE

CALIFORNIA

TEXAS

MICHIGAN

NJ

NEW YORK

ILLINOIS

CT

DC

MISSOURI

MINNESOTA

WISCONSIN

VIRGINIA

NO. CAROLINA

GEORGIA

FL

MA

HI

PR

TEXAS

PR

OHIO

PENNSYLVANIA

5,000-9,999

2,500-4,999

Under 2,500

Over 10,000

RI

VT

NH
6 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Participants and Beneficiaries Receiving

PBGC Payments by Industry of Plan Sponsor

• Over the last ten years, the mix of industries represented by participants and

beneficiaries receiving payments has changed. The largest shifts have been in the air

transportation and primary metal sectors.

• In 1987, the air transportation sector represented 3.3 percent of all participants and

beneficiaries receiving payments; in 1996, it accounted for 20.2 percent.

• The primary metals industry declined from 35.5 percent of total participants and

beneficiaries in 1987 to 23.6 percent in 1996.

Figure 4

Participants and Beneficiaries Receiving PBGC Payments

by Industry of Plan Sponsor

Reference Table A-4 in Appendix A.

Machinery and

Computer

Equipment

1987 1996

Air

Transportation

Other Industries

Primary Metals

Other Industries

Air

Transportation

Machinery and

Computer

Equipment

Primary Metals

35.5%

3.3%

47.9%

20.2%

45.5%

10.7%

23.6%

13.3%
PENSION INSURANCE DATA BOOK 1996 SECTION 1 7

Participants and Beneficiaries Receiving

PBGC Payments by Gender and Age

• Payees receiving PBGC payments are distributed across all retiree age groups.

• Across all groups, male payees outnumber female payees, who are mainly

beneficiaries under survivor provisions.

• The 70-74 age group comprises the largest number of PBGC payees.

Figure 5

Participants and Beneficiaries Receiving PBGC Payments

by Gender and Age, 1996

Reference Table A-5 in Appendix A.

Younger than

 60

60-64 65-69 70-74 75-79 80-84 85 or Older

0

10

20

30

40

50

Payees in Thousands

Male Female

Age
8 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Monthly Benefit Payments

• The amount of monthly benefits paid by PBGC varies widely.

• In 1996, half of PBGC’s payees received between $100 to $499 in monthly benefits.

This represents 38 percent of total PBGC benefits paid.

• In 1996, the median monthly benefit was $241.

Figure 6

Monthly Pension Payments by Size of Payment, 1996

Reference Table A-6 in Appendix A.

Number of

Payees

Less than $100

Less than

$100

$100 - $499

$100 - $499

$500 - $999

$500 - $999

$1,000 or

more

$1,000 or

more

Dollar Volume

of Payments
PENSION INSURANCE DATA BOOK 1996 SECTION 1 9

Total Benefit Payments

1980-1996

• PBGC’s important role in the pension system is illustrated by the continuing increase

in payments over its history.

• In 1996, PBGC disbursed a total of $790 million in monthly pension and lump sum

benefit payments to retired plan participants or their beneficiaries.

• Plans terminating since 1990 account for more than half of PBGC benefit payments.

Figure 7

Total PBGC Benefit Payments

Payment figures include annual periodic and lump sum payments.

Reference Table A-7 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$100

$200

$300

$400

$500

$600

$700

$800

Fiscal Year

Payments in Millions

Current Dollars 1996 Dollars

Payments by Date of Plan

Termination

1980 - 1989

Prior to 1980

3%

41%

1990 to Present

56%
10 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Underfunded Pension Plans of

Bankrupt Firms

1980-1994

• Only a small portion of firms declaring bankruptcy have underfunded defined

benefit pension plans.

• Of a sample of 1,655 publicly traded companies that filed bankruptcies from 1980 to

1994, less than 4 percent sponsored underfunded defined benefit pension plans.

• Ultimately, less than one-third of these underfunded plans presented claims to

PBGC. These firms represent less than 2 percent of all bankrupt firms in the sample.

Yet, almost all PBGC claims result from the bankruptcies of plan sponsors.

Figure 8

Underfunded Plans Among Publicly Traded Bankrupt Firms,

1980-1994

Reference Table A-8 in Appendix A.

71.3%

Firms with no defined

benefit plans

3.6%

Firms with

underfunded plans

Total Bankruptcies

Firms with fully

funded plans only

25.1%
PENSION INSURANCE DATA BOOK 1996 SECTION 1 11

PBGC Standard Terminations

1975-1996

• Most plans that terminate under the single-employer insurance program do not

impose claims on PBGC.

• From 1987 to 1990, over 10,000 (mostly small) plans terminated each year without

any claim on the insurance program.

• The average plan in these standard terminations had about 50 participants.

• The annual number of standard terminations has declined sharply in recent years to

fewer than 4,000 per year.

Figure 9

Standard Terminations

Reference Table A-9 in Appendix A.

'75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

0

5,000

10,000

15,000

Date of Plan Termination (Fiscal Year)

Terminations
12 SECTION 1 PENSION INSURANCE DATA BOOK 1996

PBGC Claims

1975-1996

• The dollar value of claims on PBGC has fluctuated significantly from year-to-year.

• Total annual claims (termination liabilities minus assets) have varied widely, ranging

from $28 million in 1984 to almost $1.5 billion in 1991. Years with large claims

reflect the occurrence of a few large terminations.

• Since 1975, 2,338 terminations have resulted in total claims of $5.6 billion.

Figure 10

Claims

Note: Claims are benefit liabilities minus plan assets. They do not include amounts recovered from plan sponsors.

The 1986 claims do not include that portion of the LTV Corporation claim that was subsequently offset when three plans were

returned to the company following a 1990 Supreme Court decision.

Reference Table A-10 in Appendix A.

'75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$500

$1,000

$1,500

Date of Plan Termination (Fiscal Year)

Dollars in Millions
PENSION INSURANCE DATA BOOK 1996 SECTION 1 13

Concentration of PBGC Claims

1975-1996

• The volatility in claims is primarily attributable to a few large terminations.

• For most of PBGC’s history, these few terminations have dominated claims.

• The firms with the ten largest claims have accounted for 56 percent of total claims.

Figure 11

Concentration of Claims

See Table B-2 for a list of the Top 10 firms with the largest value of claims.

Reference Table A-10 in Appendix A.

'75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Date of Plan Termination (Fiscal Year)

Dollars in

 Millions

Top 10 Claims

All Other Claims

Firms with 10 largest claims

All other firms

56%

44%

1975-1996
14 SECTION 1 PENSION INSURANCE DATA BOOK 1996

Claims by Funded Ratio

1975-1996

• Funded ratios are generally very low for plans terminating with claims against PBGC.

• Almost 80 percent of pension claims came from plans that were less than 50 percent

funded (using PBGC assumptions).

• Only $120 million out of $5.6 billion in aggregate claims came from plans

terminating with funded ratios of 75 percent or higher.

Figure 12

Claims by Funded Ratio at Termination, 1975-1996

Reference Table A-11 in Appendix A.

40.3%

Less than 25%

Funded Ratio

2.1%

75% or Higher

Funded Ratio

50% to 75%

Funded Ratio

19.4%

38.1%

25% to 49%

Funded Ratio
PENSION INSURANCE DATA BOOK 1996 SECTION 1 15

Average Claims

1975-1996

• Large claims involve plans that have an above average number of participants, and

relatively high benefit obligations per vested participant.

• The average claim per vested participant for plans with more than 1,000 participants

is greater than that of smaller plans.

Figure 13

Average Claim per Vested Participant by Plan Size

Reference Table A-12 in Appendix A.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

$22,000

1996 Dollars

Size of Plan

(by number of participants)

1-999 1,000-4,999 5,000 or More
SECTION TWO

Pensions Protected by PBGC’s

Single-Employer Insurance Program
16 SECTION 2 PENSION INSURANCE DATA BOOK 1996

Section 2: Pensions Protected by PBGC’s

Single-Employer Insurance Program

PBGC protects the pensions of one out of four U.S. workers through its singleemployer insurance program. Currently, this program provides pension insurance to

nearly 33 million participants in almost 48,000 defined benefit plans.

The first set of graphs in this section describes the characteristics of ongoing pension

plans and active participants covered by the single-employer program. The composition

of covered participants indicates that defined benefit plans are concentrated in selected

industries, a pattern that has remained relatively steady over time.

The size distribution of insured plans has changed markedly as the number of smaller

plans — particularly those with fewer than 100 participants — has declined. However,

the level of coverage has increased. In 1980, PBGC insured approximately 27 million

participants and over $200 billion of benefit liabilities in single-employer pension plans.

In 1996, these figures about 33 million and $1 trillion, respectively.

As shown in the second set of graphs, PBGC’s premium structure ties the cost of

insurance to underfunding. Since 1991, the Corporation has collected a variable rate

premium of $9 per $1,000 of underfunding in addition to the fixed premium, of $19

per participant. Prior to 1994, the variable rate premium was capped at $53 per participant — meaning that some plan sponsors were effectively paying less than $9 per $1,000

of underfunding.

The Retirement Protection Act of 1994 phased out the cap. For plan years beginning on or after July 1, 1996, virtually all plan sponsors will be assessed the full variable

rate. (Special rules apply to regulated public utilities until 1998.) Those sponsors that

continue to maintain underfunded plans will pay a premium reflective of the additional

exposure they place on the single-employer pension insurance program.

The third set of graphs describes the funding characteristics of pension plans insured

by PBGC. In 1996, pension plans less than 90 percent funded represented 20 percent of

all liabilities and just over 30 percent of all participants. The Retirement Protection Act

of 1994 targets pension plans that are less than 90 percent funded by accelerating their

funding requirements and requiring plan sponsors to notify participants when their

pension plans fall below the 90 percent funding threshold.
PENSION INSURANCE DATA BOOK 1996 SECTION 2 17

Covered Participants by Plan Size

1980-1996

• PBGC ensures that millions of American workers receive their pension benefits if

their plans are terminated in the future.

• In 1996, PBGC provided pension insurance protection to nearly 33 million

participants (workers and retirees) in single-employer plans. This represents a 19

percent increase over the total number of participants covered in 1980.

• Women represent 36 percent of the total, or almost 12 million covered participants

— nearly 9 million active workers and 3 million retirees are women.*

Figure 14

Covered Participants by Plan Size

*Source: Employee Benefits Supplement to the April 1993 Current Population Survey.

Reference Table A-13 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

0

10

20

30

40

Participants in Millions

5,000 or more

1,000 - 4,999

100 - 999

Less than 100

Number of Participants in Plan
18 SECTION 2 PENSION INSURANCE DATA BOOK 1996

PBGC-Insured Plans

• The total number of plans insured by PBGC has declined substantially in

the last decade.

• In 1996, over 47,000 single-employer defined benefit plans were insured by PBGC,

down from an all time high of over 112,000 plans covered in 1985.

• This decline primarily reflects a large number of small plan terminations.

Figure 15

PBGC-Insured Plans

Reference Table A-14 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

20

40

60

80

100

120

Plans in Thousands

Total Plans

Plans With Less

Than 100

Participants
PENSION INSURANCE DATA BOOK 1996 SECTION 2 19

PBGC-Insured Plans by Size

• The number of large plans insured by PBGC has steadily increased and reflects a

general upward trend in defined benefit plan size.

• Large plans are responsible for the overall rise in the number of covered participants.

Figure 16

PBGC-Insured Plans With 1,000 or More Participants

Reference Table A-14 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

1,000

2,000

3,000

4,000

5,000

Plans

1,000+ Participants 1,000-4,999 Participants 5,000+ Participants
20 SECTION 2 PENSION INSURANCE DATA BOOK 1996

PBGC-Covered Participants by State

• PBGC covers workers in all 50 states, the District of Columbia, and Puerto Rico.

• PBGC-covered participants are concentrated in highly populated, industrialized

states.

• More than half of all PBGC-covered participants are located in eleven states with 1

million or more participants.

Figure 17

PBGC-Covered Participants by State, 1996

Source: Employee Benefits Supplement to the April 1993 Current Population Survey.

Reference Table A-15 in Appendix A.

ALASKA

IDAHO

OREGON

WASHINGTON

UTAH

COLORADO

ARIZONA OKLAHOMA

KANSAS

NEBRASKA

SOUTH DAKOTA

NORTH DAKOTA

IOWA

IN

MS ALABAMA

ARKANSAS

LA

NEVADA

VT

NH

TENNESSEE

SO.

CAROLINA

MD

DE

CALIFORNIA

TEXAS

NJ

NEW YORK

CT

DC

MINNESOTA

VIRGINIA

NO. CAROLINA

GEORGIA

FL

MA

HI

PR

TEXAS

PR

PENNSYLVANIA

RI

WV

1 Million or More

500 - 999 Thousand

Less than 500 Thousand

WISCONSIN

MICHIGAN

OHIO

MAINE

KENTUCKY

ILLINOIS

NEW MEXICO

MONTANA

WYOMING

MISSOURI
PENSION INSURANCE DATA BOOK 1996 SECTION 2 21

PBGC-Covered Participants by Industry

• While PBGC covers workers in all major industrial sectors, manufacturing workers

make up the majority of covered participants.

• The distribution of covered participants across industries has remained largely

unchanged over the past decade.

Figure 18

PBGC-Covered Participants by Industry, 1996

Reference Table A-16 in Appendix A.

Food and Tobacco

Products

4.0%

Machinery and

Computer Equipment

4.3%

MANUFACTURING:

Chemical and Allied

Products

5.5%

Motor Vehicle

Equipment

5.6%

32.3% Other Manufacturing

Other Industries

17.4%

Manufacturing

51.7%

Services

10.5%

Public

Utilities

8.2% Finance,

Insurance,

and Real

Estate

12.2%
22 SECTION 2 PENSION INSURANCE DATA BOOK 1996

Coverage by Funding Status

• 70 percent of covered participants and 80 percent of vested liabilities are in plans that

are at least 90 percent funded.

• Over half of covered participants and liabilities are in plans that are overfunded.

Figure 19

Coverage by Funding Status, 1996

Vested liabilities have been adjusted to the interest rate that would have been used to purchase an annuity at the beginning of the

relevant year.

Reference Table A-17 in Appendix A.

 Liabilities in

PBGC-Covered Plans:

 Participants in

PBGC-Covered Plans:

Overfunded

51%

Overfunded

56%

19%

90-99%

Funded

24%

90-99%

Less than 90% Funded

Funded

30%

20%

Less than 90%

Funded
PENSION INSURANCE DATA BOOK 1996 SECTION 2 23

PBGC Premium Structure

• A majority of covered participants are in plans that do not pay any variable-rate

premium.

• In 1996, fully funded plans covering 22 million participants paid total premiums of

$421 million.

• Underfunded plans covering 10.5 million participants, paid total premiums of

$725 million, or an average total premium of $69 per participant.

Figure 20

Distribution of Participants by Premium Paid, 1996

Reference Tables A-18 and A-19 in Appendix A.

$19

Under $39

$39.00-$58.99

$59.00-$78.99

$79.00-$98.99

$99.00-$118.99

$119.00 and Over

0%

10%

20%

30%

40%

50%

60%

70%

Percent of Total Participants

Total Premium per Participant

Variable Rate

54%

46%

TOTAL PREMIUMS, 1996

$1,146 Million

(No Variable Rate Paid)
24 SECTION 2 PENSION INSURANCE DATA BOOK 1996

PBGC Premium Revenues

• The variable-rate premium is $9 per $1,000 in underfunded vested liabilities. Prior

to 1994, the variable-rate premium was capped at $53 per participant; this cap was

phased out for plan years beginning between July 1, 1994 and July 1, 1996.

• In 1996, the increase in underfunding and the phasing out of the variable-rate

premium cap increased PBGC’s premium revenues.

Figure 21

Premium Revenue

Reference Table A-20 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$200

$400

$600

$800

$1,000

$1,200

Fiscal Year

Dollars in Millions
PENSION INSURANCE DATA BOOK 1996 SECTION 2 25

Insured Plan Liabilities

1980-1996

• The value of vested benefits in PBGC-insured plans has increased since 1980.

A large part of this increase is attributable to falling interest rates over much of the

period.

• In addition, part of this increase, after 1989, is associated with the shorter vesting

schedule enacted as part of the Tax Reform Act of 1986.

• Other factors include an increase in the number of covered participants, growth in

pension benefit levels, and gradual maturing of the active workforce.

Figure 22

Liabilities of Insured Plans and Interest Rates

*Vested liabilities have been adjusted to reflect the cost to purchase an annuity at the beginning of the relevant year.

Reference Table A-21 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

0%

5%

10%

15%

Beginning of Year

Dollars in Billions PBGC Interest

Rate*

Liabilities Interest Rate
26 SECTION 2 PENSION INSURANCE DATA BOOK 1996

Insured Plans Underfunding

1980-1996

• Over time, declining interest rates are largely responsible for increases in vested

underfunding.

• From 1995 to 1996, vested underfunding nearly doubled primarily as a result of a

sharp decrease in the interest rate from 7.15 percent to 5.30 percent.

• In addition to interest rates, underfunding is affected by general economic conditions

and increased plan maturity.

Figure 23

Underfunding and Interest Rates

*Vested liabilities have been adjusted to reflect the cost to purchase an annuity at the beginning of the relevant year.

Reference Table A-22 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$20

$40

$60

$80

$100

0%

5%

10%

15%

Beginning of Year

Dollars in Billions PBGC Interest

Rate*

Vested Underfunding Interest Rate
PENSION INSURANCE DATA BOOK 1996 SECTION 2 27

Underfunding by Industry

• In both 1987 and 1996, the manufacturing sector represented over 70 percent of

total underfunding.

• However, within this sector, relative shares have shifted, with primary metals showing

the largest decline, from 24.6 to 14.1 percent, and machinery and computer

equipment showing the largest increase, from 4.3 to 12.1 percent.

• Outside of manufacturing, public utilities showed a significant increase over the

period from 1.3 percent in 1987 to 5.2 percent in 1996.

Figure 24

Underfunding by Industry

Vested liabilities have been adjusted to reflect the cost to purchase an annuity at the beginning of the relevant year.

Reference Table A-23 in Appendix A.

0% 10% 20% 30% 40%

24.6%

13.9%

7.8%

1.3%

2.2%

40.4%

14.1%

13.4%

3.1%

5.2%

5.6%

39.9%

Percent of Total Underfunding

CHEMICAL PRODUCTS:

PUBLIC UTILITIES:

OTHER INDUSTRIES:

1987

1996

Primary Metals

Motor Vehicle Equipment

Fabricated Metal Products

MANUFACTURING:

5.5%

AIR TRANSPORTATION: 6.5%

4.3%

12.1% Machinery and Computer Equipment
28 SECTION 2 PENSION INSURANCE DATA BOOK 1996

Concentration of Underfunding

1989-1996

• In recent years, the concentration of underfunding has shifted to a relatively equal

distribution between the top 50 firms with the largest level of underfunding and the

rest of the firms with underfunded plans.

• From 1989 to 1993, vested underfunding was heavily concentrated in the top 10 and

top 50 firms with the largest levels of underfunding.

• In 1996, the top 10 firms represent 28 percent of total underfunding, the top 50

firms 49 percent, and the balance of firms 51 percent.

Figure 25

Concentration of Underfunding

Vested liabilities have been adjusted to reflect the cost to purchase an annuity at the beginning of the relevant year.

Reference Table A-24 in Appendix A.

1989 1990 1991 1992 1993 1994 1995 1996

$0

$10

$20

$30

$40

$50

$60

$70

Beginning of Year

Dollars in Billions

Rest of Top 50 Firms

All Other Firms

Top 10 Firms
PENSION INSURANCE DATA BOOK 1996 SECTION 2 29

Insured Plans Overfunding

1980-1996

• The declining funding ratio for overfunded plans is a result, in part, of falling interest

rates and associated increases in plan liabilities.

• Other factors also played a role, including the enactment of more restrictive full

funding limits in 1987.

Figure 26

Status of Overfunded Plans

Vested liabilities have been adjusted to reflect the cost to purchase an annuity at the beginning of the relevant year.

Reference Table A-25 in Appendix A.

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96

$0

$200

$400

$600

$800

0%

50%

100%

150%

200%

Beginning of Year

Dollars in Billions Vested Funding Ratio

Assets in Excess

of Liabilities

Liabilities

Funding Ratio
APPENDIX A

Reference Tables
Table A-1

 Financial Position of PBGC’s Single-Employer Program (1980-1996)

Year Assets

(in millions)

Liabilities

(in millions)

Net Position

(in millions)

8081828384858687888990919293949596

0-1996).

iabilities that were subsequently returned by a Supreme Court ruling to a reorganized LTV Corporation.

columns may not add up.

$467

515835

1,0851,0631,1551,7402,1632,4223,0592,7975,4226,3818,2678,281

10,37112,043

$561

704

1,1681,6081,5252,4805,5663,7123,9654,1834,7107,925

9,118

11,164

9,521

10,686

11,174

-$95-189-333-523-462

-1,325-3,826-1,549-1,543-1,124-1,913-2,503-2,737-2,897-1,240

-315

+869

* * *
Table A-2

Benefit Payments, Payees, and Deferred Payees (1980-1996)

Total

1996

Dollars

(in millions)

Payees

 in Year

(in thousands)

System (Plus/Pay 3000), fiscal year calculations, PBGC Management Reports, and PBGC Benefit Payment Reports.

uts of pensions with a present value less than $3,500 and back payments to current pensioners.

ensions and lump sum payments, total number of payees may be less than the sum of pensioners and lump sum recipients.

rmination status as of end of fiscal year.

een adjusted to reflect subsequent improvements in data quality.

re calculated using Consumer Price Index-Urban Consumers.

$3

7

15

834229

11

13151713202220

30415658667792

111

112112116

146156162176187206

t

s

Payees

in Year

(in thousands)

Average

Monthly

Payment

Median

Monthly

Payment Total (in millions) Average Payment Total (in millions) Payees in Year (in thousands) Deferred Payees (in thousands)

PENSION PAYMENTS LUMP SUM PAYMENTS ALL PAYMENTS

$71

93

133204254244367415466441438582691723738760770

28365155657591

110110

107

110

140150157170182199

$124

129165206232226275248265261262338359379359344328

$91

877996

112

128141174178180184189232234238232241

25531211256665767

$1,623

1,4842,938

2,511

1,9421,7822,1881,7703,5153,0512,4372,5583,0782,6862,8183,3352,757

$37

5794

137169170261300356353369514634678719761790

25335574839499

104104109

115

183184188198210240
Table A-3

PBGC Payees Receiving Payments by State (1996)

Total U.S. Population

Over 65

System (Plus/Pay 3000), fiscal year calculations, and U.S. Census, Resident Population of the U.S., Regions, and States by Selected Age Groups and Sex, April 1, 1990.

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

Payees

2,555

38

1,4801,0299,5902,5444,918

508198

19,659

5,335

954606

8,4699,3065,733

469

1,6221,3761,5532,0033,9049,9633,371

704

1,704

85

1.2%

*

0.7%0.5%4.7%1.2%2.4%0.2%0.1%9.5%2.6%0.5%0.3%4.1%4.5%2.8%0.2%0.8%0.7%0.8%1.0%1.9%4.8%1.6%0.3%0.8%

*

519,860

22,095

476,074348,737

3,111,802

328,364443,631

77,08480,285

2,355,927

650,686123,727120,901

1,429,420

693,937425,735341,977465,057466,631162,862514,344815,005

1,104,103

545,893319,400715,496106,197

1.7%0.1%1.5%1.1%

10.0%

1.1%1.4%0.2%0.3%7.6%2.1%0.4%0.4%4.6%2.2%1.4%1.1%1.5%1.5%0.5%1.7%2.6%3.6%1.8%1.0%2.3%0.3%

State

Total U.S. Population

Over 65

NebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingForeign Country ResidentsTOTAL

Payees

266580934

9,338

558

13,408

2,857

36

21,392

707762

25,891

1,0731,4631,009

45

3,8565,629

485631

5,165

999

3,6994,704

58

588

205,876

0.1%0.3%0.5%4.5%0.3%6.5%1.4%

*

10.4%

0.3%0.4%

12.6%

0.5%0.7%0.5%

*

1.9%2.7%0.2%0.3%2.5%0.5%1.8%2.3%

*

0.3%

100.0%

222,677126,602124,524

1,025,021

161,900

2,340,181

800,449

90,939

1,402,841

422,954389,768

1,821,473

—

149,749394,046

102,114

616,144

1,708,425

149,482

65,887

661,398572,921267,830650,153

46,966

—

31,079,674

0.7%0.4%0.4%3.3%0.5%7.5%2.6%0.3%4.5%1.4%1.3%5.9%

—

0.5%1.3%0.3%2.0%5.5%0.5%0.2%2.1%1.8%0.9%2.1%0.2%

—

100.0%
Table A-4

PBGC Payees by Industry (1987 and 1996)

Payees

(1996)

ND CONSTRUCTION

e Mill Products

Products

 Products

mputer Equipment

pment

laneous Plastics

 and Concrete

ng

UBLIC UTILITIES

on

D REAL ESTATE

ONS

 System (Plus/Pay 3000), fiscal year calculations, and PBGC Management Reports.

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

Payees

(1987)

Benefit Payments

(1996)

Mean Monthly

Pension

(1996)

Median Monthly

Pension

(1996)

788

84,836

4,4198,2293,457

14,686

3,426

39,264

2,2581,4347,663

13,557

3,5919,915

51

1,6116,896

650

1,970

364

110,672

0.7%

76.7%

4.0%7.4%3.1%

13.3%

3.1%

35.5%

2.0%1.3%6.9%

12.3%

3.3%9.0%0.1%

1.5%6.2%0.6%1.8%0.3%

100.0%

4,801

130,782

11,780

14,738

5,801

22,030

5,132

48,632

6,4481,832

14,389

54,561

41,67112,835

55

3,6956,908

929

3,992

208

205,876

2.3%

63.5%

5.7%7.2%2.8%

10.7%

2.5%

23.6%

3.1%0.9%7.0%

26.5%

20.2%

6.2%

*

1.8%3.4%0.5%1.9%0.1%

100.0%

2.4%

56.0%

1.9%5.6%1.8%8.7%1.7%

29.5%

2.6%0.4%3.8%

38.1%

34.2%

3.9%

*

1.1%0.9%0.3%1.3%

*

100.0%

$17,885,242425,966,266

14,213,10942,806,02313,430,35266,180,35513,190,844

224,816,558

19,621,045

2,862,765

28,845,216

290,075,002

260,476,810

29,537,376

60,816

8,350,8646,641,9442,025,8709,843,472

220,256

$790,499,604

$349

298

130293216291241466299183227

574

610278109

156106193158

99

$328

$300

230

68

222170229202416251125126

464

445

211

123

153

61

129134

61

$241
Table A-5

PBGC Payees by Gender and Age (1996)

TOTAL

Average

Monthly

Pension

System (Plus/Pay 3000), fiscal year calculations, and PBGC Management Reports.

totals may not add up exactly to totals in other tables and percentages may not add up to 100 percent.

19,14626,91737,81042,08834,73223,04414,880

198,617

100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%

$424

496441390340273206

$328

MALE

Average

Monthly

Pension

15,02222,15329,37129,94822,39913,773

7,996

140,662

78.5%82.3%77.7%71.2%64.5%59.8%53.7%70.8%

$478

538501460426357273

$439

FEMALE

Average

Monthly

Pension

4,1244,7648,439

12,14012,333

9,2716,884

57,955

21.5%17.7%22.3%28.8%35.5%40.2%46.3%29.2%

$272

327241209178146121

$194
Table A-6

PBGC Pensions by Size (1996)

ayment Payees Payments

 System (Plus/Pay 3000), fiscal year calculations, and PBGC Management Reports.

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

18,91830,74720,39916,87614,450

11,290

10,547

9,2569,5488,0497,3026,370

13,62410,81710,343

81

198,617

9.5%

15.5%10.3%

8.5%7.3%5.7%5.3%4.7%4.8%4.1%3.7%3.2%6.9%5.4%5.2%

*

100.0%

$6,431,32225,936,21327,886,40032,167,85335,574,61933,882,15337,476,48438,337,23945,214,31843,155,82443,247,61941,621,840

102,885,905101,086,471152,150,230

3,431,162

$770,485,662

0.8%3.4%3.6%4.2%4.6%4.4%4.9%5.0%5.9%5.6%5.6%5.4%

13.4%13.1%19.7%

0.4%

100.0%
Table A-7

Payees and Benefit Payments by Date of Plan Termination (1996)

n

Payees

Receiving Payment

(1996)

Current Dollars

(in millions)

1996 Dollars

(in millions)

 System (Plus/Pay 3000), fiscal year calculations, and PBGC Management Reports.

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

15,786

5,2948,645

16,368

11,586

2,1498,568

23,230

8,331

10,298

7,1285,788

40,44314,539

3,907

10,798

2,786

10,232

205,876

2.9%1.5%1.7%5.5%4.7%0.6%3.0%

14.0%

3.7%4.3%2.2%2.0%

29.7%

7.6%1.4%6.3%1.7%7.2%

100.0%

$71

93

133204254244367415466441438582691723738760770

Benefit Payments

(1996) Fiscal Year

Total Annual Pension Payments

7.7%2.6%4.2%8.0%5.6%1.0%4.2%

11.3%

4.0%5.0%3.5%2.8%

19.6%

7.1%1.9%5.2%1.4%5.0%

100.0%

$23,107,760

11,779,423

13,713,92843,383,59437,430,230

4,487,855

23,366,193

110,650,871

29,275,02233,599,81617,197,23715,654,668

234,991,017

60,040,214

11,426,113

49,723,82013,365,09557,306,748

$790,499,604

19801981198219831984198519861987198819891990199119921993199419951996

$34

5079

129166166259298347342356499617665699739770
Table A-8

kruptcies and Underfunding Among Publicly Traded Firms (1980-1994)

Total

Bankruptcies

Compustat Data (12/30/95) and New Generations Database and Yearbook, various issues.

GC claims experience.

86769386

114

128128

95

122150149149100

119

60

1,655

123611735895360

60

Bankrupt Firms With

Defined Benefit (DB) Plan

253023222335302026294542242715

416

29.1%39.5%24.7%25.6%20.2%27.3%23.4%21.1%21.3%19.3%30.2%28.2%24.0%22.7%25.0%25.1%

1.2%2.6%3.2%7.0%0.9%0.8%5.5%3.2%4.1%5.3%6.0%3.4%3.0%5.0%0.0%3.6%

Bankrupt Firms With

Underfunded DB Plan
Table A-9

PBGC Terminations, Claims, and Underfunding (1975-1996)

File (9/30/96) and PBGC Case Administration System.

values may not add up exactly across columns.

e calculated on a plan basis and identified with fiscal year of plan termination for each plan.

are for 7/1/74 to 6/30/75. 1976 values are for 7/1/75 to 9/30/76. For 1977 on, values are for 10/1 of the prior calendar year to 9/30 of the current calendar year.

minations shown in this table may differ from those reported elsewhere, as they reflect the fiscal year of plan termination, rather than the fiscal year in which the loss is recorded.

GC completes reviewing, establishes termination dates, and determines recoveries.

Trusteed

Terminations

100171130102

81

103137131149

97

112

127102

957593

152126

82945524

2,338

Assets

(in millions)

$18.9

41.718.843.331.274.267.1

145.6214.3

19.438.4

274.6136.3108.0

79.1

101.4

1,475.8

233.8

96.3

309.8179.1161.9

$3,868.0

Liabilities

(in millions)

$56.0

88.051.7

124.5

80.6

166.4174.3460.5412.0

47.4

260.9

1,165.6

352.2383.6203.8213.5

2,912.1

849.2218.2752.6263.0255.9

$9,492.0

Gross Claims

(in millions)

$37.2

46.432.981.249.492.3

107.2315.0197.7

28.1

222.5891.0215.9275.6124.7

112.1

1,436.2

615.3122.0442.8

83.994.1

$5,622.0

Recoveries

(in millions)

$5.128.5

9.28.17.2

32.339.344.439.6

3.3

14.561.232.824.421.4

6.5

253.4

70.313.826.5

8.22.8

$749.0

Net Claims

(in millions)

$32.1

17.923.773.142.260.067.9

270.6158.1

24.8

208.0829.8183.1251.2103.3105.6

1,182.9

545.0108.1416.3

75.791.2

$4,870.6

Total

Underfunding

(in millions)

————

$35,910

20,15612,04310,263

11,783

9,876

11,182

14,71920,69222,34125,37026,78132,80338,19153,06871,00031,38563,682

—

Gross Claims

as a Percentage

of Underfunding

————

0.1%0.5%0.9%3.1%1.7%0.3%2.0%6.1%1.0%1.2%0.5%0.4%4.4%1.6%0.2%0.6%0.3%0.1%

—
Table A-10

PBGC Claims (1975-1996)

Total Claims

File (9/30/96) and PBGC Case Administration System.

not add up to 100 percent.

lated on a plan basis.

ummations of all claims in that fiscal year, associated with the Top 10 firms.

GC completes reviewing, establishes termination dates, and determines recoveries.

 firms with the largest value of claims.

$37,180,228

46,355,74132,898,57781,215,29549,418,50492,271,610

107,165,066314,952,991197,736,875

28,066,664

222,467,764890,956,676

215,900,110

275,612,316124,698,529

112,104,410

1,436,230,119

615,304,765121,960,026442,800,126

83,935,22394,054,921

$5,623,286,536

Claims of Top 10 Firms and

Percent of Total Annual Claims

——————————

$180,568,290

722,321,848

35,566,557

186,046,771

——

1,268,660,796

478,540,494

—

271,092,211

——

$3,142,796,967

All Other Claims and

Percent of Total Annual Claims

——————————

81.2%81.1%16.5%67.5%

——

88.3%77.8%

—

61.2%

——

55.9%

$37,180,228

46,355,74132,898,57781,215,29549,418,50492,271,610

107,165,066314,952,991197,736,875

28,066,66441,899,474

168,634,828180,333,553

89,565,545

124,698,529

112,104,410

167,569,323136,764,271121,960,026171,707,915

83,935,22394,054,921

$2,480,489,569

100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%

18.8%18.9%83.5%32.5%

100.0%100.0%

11.7%

22.2%

100.0%

38.8%

100.0%100.0%

44.1%
Table A-11

PBGC Claims by Plan Funded Ratio at Termination (1975-1996)

Ratio Claims

File (9/30/96) and PBGC Case Administration System.

claims over the period 1975-1996.

to change as PBGC completes reviewing, establishes termination dates and determines recoveries.

ratio of trust plan assets to plan benefit liabilities before recoveries from employers.

percentages may not add up to 100 percent.

$2,267,930,699

2,143,755,7911,091,509,664

120,090,382

$5,623,286,536

40.3%38.1%19.4%

2.1%

100.0%
Table A-12

BGC Average Claim per Vested Participant by Plan Size (1975-1996)

Claims

File (9/30/96), PBGC Case Administration System, and Bureau of Labor Statistics.

ubject to change as PBGC completes reviewing, establishes termination dates and determines recoveries.

gated and average counts of plans, claims, and participants over the period 1975-1996.

percentages may not add up to 100 percent.

d using Consumer Price Index - Urban Consumers.

$256,366,391

1,275,171,3151,746,254,478

959,835,642

1,385,658,710

$5,623,286,536

4.6%

22.7%31.1%17.1%24.6%

100.0%

Vested

Participants Plans

Average

Claim per

Participant Claims (1996 Dollars)

Average Claim

Per

Participant

(1996 Dollars)

53,600

211,597

166,494

52,23183,690

567,612

1,521

725

81

74

2,338

$4,783

6,026

10,48818,37716,557$9,907

$367,002,047

1,814,816,4282,395,283,4401,288,875,6151,664,596,464

$7,530,573,994

4.9%

24.1%31.8%17.1%22.1%

100.0%

$6,847

8,577

14,38724,67619,890

$13,267
Table A-13

PBGC-Covered Participants (1980-1996)

otal

ered

ipants

usands)

ious years.

GC internal calculations.

1876820137094300617433515671723426

In Plans with

10,000+

Participants

(in thousands)

12,04412,30412,19012,77012,70712,72412,80013,52213,82014,25314,33614,75915,41615,89516,25816,93416,986

In Plans with

5,000-9,999

Participants

(in thousands)

2,8332,8942,8672,9083,0103,1643,2363,1683,1413,3563,3513,4333,5203,6173,8143,7713,813

In Plans with

1,000-4,999

Participants

(in thousands)

5,7765,9006,0776,0306,5036,5796,5966,7286,8446,8816,9896,9456,9977,0006,9426,9086,870

In Plans with

250-999

Participants

(in thousands)

3,8523,9013,9793,8394,1464,0324,1044,4344,4013,9844,0643,9683,6943,5523,2923,1363,139

In Plans with

100-249

Participants

(in thousands)

1,4361,4551,4841,5361,5881,5851,5931,6441,5811,4921,4291,4151,2761,1761,1201,0621,030

In Plans with

25-99

Participants

(in thousands)

1,0641,0941,0691,0901,1311,1641,1551,1661,1501,1081,023

946825758698625602

In Plans with

<25

Participants

(in thousands)

513528516528552561559538524500441385328273248198186
Table A-14

PBGC-Insured Plans (1980-1996)

al

red

ns

ious years.

GC internal calculations.

3992

2368

91

08

4451

7924

99178978108915

Insured Plans

with

10,000+

Participants

349344393377386354379

411

412427458495505504524528507

Insured Plans

with

5,000-9,999

Participants

365360

411

413428435447450446462477493504517553559533

Insured Plans

with

1,000-4,999

Participants

2,8583,0102,9652,9083,1783,1253,1583,2763,314

3,211

3,4003,3533,3673,3363,3613,3083,148

Insured Plans

with

250-999

Participants

7,4397,8038,1428,0068,4708,2308,1869,0368,7998,0578,0857,9867,4027,0646,6826,7436,066

Insured Plans

with

100-249

Participants

8,5128,9289,3169,676

10,00510,003

9,859

10,339

9,9659,3958,9768,8677,9917,3586,9416,8506,181

Insured Plans

with

25-99

Participants

19,06919,95620,64621,12321,89122,60922,44222,37322,028

21,113

19,46417,88815,41014,39213,100

11,674

10,787

Insured Plans

with

<25

Participants

56,84759,49161,55064,16567,13367,45267,47365,46663,31559,05951,03943,63536,41030,60725,84923,92720,393
Table A-15

Distribution of Covered Participants by State (1996)

Covered Particpants

ployee Benefits Supplement to the April 1993 Current Population Survey, and PBGC estimates.

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

378,462

52,202

450,239212,069

3,321,095

365,411

698,196163,130

48,939

1,487,746

955,942

114,191

104,403

1,680,239

698,196368,674355,623522,016518,753143,554701,459704,722

1,262,626

678,621176,180783,024

94,615

1.2%0.2%1.4%0.7%

10.2%

1.1%2.1%0.5%0.2%4.6%2.9%0.4%0.3%5.2%2.1%1.1%1.1%1.6%1.6%0.4%2.2%2.2%3.9%2.1%0.5%2.4%0.3%

State

NebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingU.S. TerritoriesTOTAL

199,019189,231140,292

1,102,759

140,292

2,192,466

890,690

55,464

1,647,613

287,109303,422

1,657,401

64,387

107,666446,976

52,202

512,228

1,977,136

176,180

68,515

1,138,647

828,700296,897

1,030,982

78,302

1,097

32,626,000

0.6%0.6%0.4%3.4%0.4%6.7%2.7%0.2%5.1%0.9%0.9%5.1%0.2%0.3%1.4%0.2%1.6%6.1%0.5%0.2%3.5%2.5%0.9%3.2%0.2%0.2%

100.0%

Covered Particpants
Table A-16

n of Covered Participants, Premiums, and Plans by Industry (1987 and 1996)

ND CONSTRUCTION

d Products

Products

 Products

mputer Equipment

pment

roducts

laneous Plastics

ng

UBLIC UTILITIES

on

D REAL ESTATE

ONS

individual items, totals may not add up to totals in other tables and percentages may not add up to 100 percent.

Covered Participants

(1987)

Premiums

(1996)

Covered Plans

(1996)

776,768

16,144,639

1,350,824

1,182,113

1,244,2871,418,1981,925,360

669,012

1,046,331

431,225

6,877,289

4,090,128

431,949

1,226,2092,431,970

842,130

2,117,5034,036,5433,166,751

25,529

31,200,000

2.5%

51.7%

4.3%3.8%4.0%4.5%6.2%2.1%3.4%1.4%

22.0%

13.1%

1.4%3.9%7.8%

2.7%6.8%

12.9%10.1%

0.1%

100.0%

599,039

16,864,101

1,806,3881,009,4191,289,3171,405,7941,840,997

803,780810,652442,354

7,455,399

3,843,703

580,967600,152

2,662,584

686,894

2,330,3863,991,7293,439,201

870,947

32,626,000

1.8%

51.7%

5.5%3.1%4.0%4.3%5.6%2.5%2.5%1.4%

22.9%

11.8%

1.8%1.8%8.2%

2.1%7.1%

12.2%10.5%

2.7%

100.0%

2.0%

54.0%

5.4%3.9%3.7%3.7%4.9%2.2%5.7%1.4%

23.3%

13.0%

3.7%2.7%6.5%

2.1%5.5%

10.6%10.0%

2.9%

100.0%

$22,872,288618,826,592

61,394,79644,415,07142,351,49141,975,521

56,190,116

24,826,00265,043,64015,881,091

266,748,865

149,168,623

42,876,53731,434,81474,857,273

23,729,34462,951,326

121,148,053114,108,413

33,195,362

$1,146,000,000

3,472

15,986

1,2393,0321,2841,492

520796805699

6,117

2,195

130884

1,181

3,9792,8965,4758,4625,151

47,615

7.3%

33.6%

2.6%6.4%2.7%3.1%1.1%1.7%1.7%1.5%

12.8%

4.6%

0.3%1.9%2.5%

8.4%6.1%

11.5%17.8%10.8%

100.0%

Covered Participants

(1996)
Table A-17

PBGC Coverage by Funding Status (1996)

COVERED PARTICIPANTS

unded

ns

orm 5500.

 and Poor’s Compustat Data (12/31/95) with adjustments from the PBGC Top 50 process.

3 mortality table and the interest rate that would have been used to purchase an annuity at the beginning of 1996.

percentages may not add up to 100 percent.

51.2% 6,043,739

LIABILITIES

90-99.99%

Funded Plans

18.5% 9,892,646 30.3%

<90%

Funded Plans

$1,093,125 $614,094 56.2%

All Plans

(in millions)

Overfunded

Plans

(in millions)

90-99.99%

Funded Plans

(in millions)

<90%

Funded Plans

(in millions)

$266,701 24.4% $212,230 19.4%
Table A-18

Distribution of Participants by Total Premium Paid (1996)

mium

cipant

Participants % of Participants in

Variable Rate PremiumPaying Plans

ATE PREMIUM PAID)

r $29

 $38.99 $48.99 $58.99 $68.99 $78.99 $88.99 $98.99

$108.99

 $118.99

r More

E PREMIUM PAYERS

L PLANS

individual items, percentages may not add up to 100 percent.

—

13.4%13.0%10.5%12.5%

8.8%

11.5%

9.2%6.0%4.3%2.3%8.5%

100.0%

—

22,150,061

1,404,8611,364,1381,103,5671,307,027

923,691

1,204,329

958,957623,851447,328244,752893,438

10,475,93932,626,000

67.9%

4.3%4.2%3.4%4.0%2.8%3.7%2.9%1.9%1.4%0.8%2.7%

32.1%

100.0%

% of

All Participants
Table A-19

Premium Receipts by Size of Plan and Type of Premium (1996)

n

Flat

Rate Premium

L

996).

individual items, premium totals may not equal those in other tables and percentages may not add up to 100 percent.

ons of Flat Rate and Variable Rate Premiums, respectively, of Total Premiums.

$11,431,113

36,705,72631,152,429

540,604,731

$619,894,000

1.8%5.9%5.0%

87.2%

100.0%

2.6%7.9%6.3%

83.2%

100.0%

Variable

Rate Premium Total Premium

$18,601,086

54,388,42240,567,868

412,548,624

$526,106,000

3.5%

10.3%

7.7%

78.4%

100.0%

$30,032,199

91,094,14971,720,297

953,153,355

$1,146,000,000

54% 46% 100%
Table A-20

GC Premium Revenue, Benefit Payments, and Expenses (1980-1996)

Total

Premium Revenue

(in millions)

0-1996).

onents. The flat rate is a uniform premium charge for each covered participant in a plan. The variable rate is an additional amount charged per participant that varies with the amount

um is a limit placed on the premium that would be required according to the variable rate.

ent Protection Act of 1994, PBGC’s variable rate premium was $9/$1,000 of Unfunded Vested Benefits, up to a cap of $53 per participant.

mplete phasing out of the $53 cap by 1997.

individual items, figures may not add up to totals in other tables.

$71

7580828182

201268465603659741875890955838

1,146

$14

-3

-38-82

-118

-121

-93-68

61

205227156144105101

-61

206

$37

5794

137169170261300356353369514634678719761790

$20

212427303333364845637197

107135138150

Benefit Payments

(in millions)

Administrative &

Investment

Expenses

(in millions)

Premiums Minus

Benefits Paid

and Expenses

(in millions)
Table A-21

Funding of Insured Plans and PBGC Interest Rates (1980-1996)

m Internal Revenue Service Form 5500 Series Filings for single-employer plans with 100 or more participants.

Compustat data with adjustments from the PBGC Top 50 process.

d to reflect the cost to purchase an annuity at the beginning of the relevant year.

Assets

(in millions)

$259,810

309,969331,540376,732457,644500,673619,490644,239640,741699,886797,561

755,112

858,358842,301903,200959,364

1,132,049

Liabilities

(in millions)

$211,817

207,336206,303241,010280,695308,617

406,118

463,255450,844519,375596,564628,658728,715787,069890,500845,366

1,093,125

$20,156

12,04310,263

11,783

9,876

11,182

14,71920,69222,34125,37026,78132,80338,19153,06871,00031,38563,682

Funding

Ratio

123%150%161%156%163%162%153%139%142%135%134%120%

118%

107%101%

113%

104%

Underfunding

(in millions)

PBGC

Rate*

8.50%9.75%

10.75%

9.75%9.75%9.75%8.50%7.50%8.25%7.75%7.25%7.25%6.25%6.40%5.65%7.15%5.30%

$67,894

114,676

135,500147,505186,825203,238228,091201,676212,238205,881227,778159,257167,834108,300

83,700

145,383102,606

Overfunding

(in millions)
Table A-22

Financial Status of Underfunded Plans (1980-1996)

m Internal Revenue Service Form 5500 Series Filings for single-employer plans with 100 or more participants.

Compustat data with adjustments from the PBGC Top 50 process.

d to reflect the cost to purchase an annuity at the beginning of the relevant year.

Assets

(in millions)

$53,840

31,58729,96737,03726,20828,72241,78062,94268,92069,20479,972

101,207127,379178,001316,000

211,433

415,349

Liabilities

(in millions)

$73,996

43,63040,23048,82036,08439,90456,49983,63491,26194,574

106,753134,010165,570231,069387,000242,818479,031

$20,156

12,04310,263

11,783

9,876

11,182

14,71920,69222,34125,37026,78132,80338,19153,06871,00031,38563,682

Funding

Ratio

73%72%74%76%73%72%74%75%76%73%75%76%77%77%82%87%87%

Underfunding

(in millions)

PBGC

Rate*

8.50%9.75%

10.75%

9.75%9.75%9.75%8.50%7.50%8.25%7.75%7.25%7.25%6.25%6.40%5.65%7.15%5.30%
Table A-23

Funded Status of PBGC-Insured Plans by Industry (1987 and 1996)

ND CONSTRUCTION

d Products

al Equipment

Products

 Products

pment

mputer Equipment

roducts

g

ical Instruments

ng

UBLIC UTILITIES

on

D REAL ESTATE

ONS

ustat Data (12/31/95) with adjustments from the PBGC Top 50 process.

percentages may not add up to 100 percent.

Underfunding by Funding Ratio

(1996)

(in millions)

Industry Underfunding

(1996)

(in millions)

<70%

$84

13,809

287440249310

1,6143,231

213

0

5,544

338

1,583

915

607

88

221

97

336103677148

$16,168

Industry Underfunding

(1987)

(in millions)

70%-79% 80%-89% 90% or more

$451

8,888

1,032

502

1,477

311

191939202

72

2,411

429

1,321

2,481

1,077

276

1,128

389

1,140

623361207

$14,540

$740

10,382

1,342

370204

1,304

778

1,2491,037

938774

1,2061,180

4,255

1,8321,2321,190

195516

1,105

651176

$18,019

$47

12,203

919168

50

282

5,9682,308

371316250

411

1,160

1,455

630

50

776

107145909

88

0

$14,954

$333

16,026

461563

1,6181,0052,874

890459109

5,091

117

2,840

1,727

1,138

320269

154783587916166

$20,692

1.6%

77.5%

2.2%2.7%7.8%4.9%

13.9%

4.3%2.2%0.5%

24.6%

0.6%

13.7%

8.4%

5.5%1.6%1.3%

0.7%3.8%2.8%4.4%0.8%

100.0%

$1,32145,282

3,5801,4811,9802,2078,5527,7271,8231,3268,9792,3845,243

9,106

4,1461,6453,315

788

2,1362,7411,777

530

$63,682

2.1%

71.1%

5.6%2.3%3.1%3.5%

13.4%12.1%

2.9%2.1%

14.1%

3.7%8.2%

14.3%

6.5%2.6%5.2%

1.2%3.4%4.3%2.8%0.8%

100.0%
Table A-24

Concentration of Underfunding (1989-1996)

Rest of Top 50 Firms

Vested

Underfunding

(in millions)

ustat Data (12/31/95) with adjustments from the PBGC Top 50 process.

tifies those firms with the largest amount of PBGC-guaranteed underfunding in all of their defined benefit plans.

percentages may not add up to 100 percent.

44.8%48.7%64.7%62.5%56.2%41.9%26.3%27.8%

All Vested

Underfunding

(in millions)

Top 10 Firms

Vested

Underfunding

(in millions)

Rest of Vested

Underfunding

(in millions)

$25,370

26,78132,80338,19153,06871,00031,38563,682

$11,360

13,03021,20823,88029,84529,780

8,247

17,712

20.7%16.7%16.4%14.5%15.5%14.0%16.8%20.5%

$5,247

4,4845,3795,5408,2049,9535,272

13,084

34.5%34.6%18.9%23.0%28.3%44.0%56.9%51.6%

$8,763

9,2676,2168,771

15,01931,26717,86632,886
Table A-25

Financial Status of Overfunded Plans (1980-1996)

m Internal Revenue Service Form 5500 Series Filings for single-employer plans with 100 or more participants.

Compustat data with adjustments from the PBGC Top 50 process.

d to reflect the cost to purchase an annuity at the beginning of the relevant year.

$205,970

278,382301,573339,695431,436471,951577,710581,297571,821630,682717,589653,905730,979664,300587,200747,931716,700

Assets

(in millions)

Liabilities

(in millions)

$138,076

163,706166,073192,190

244,611

268,713349,619379,621359,583424,801

489,811

494,648563,145556,000503,500602,548614,094

Overfunding

(in millions)

$67,894

114,676

135,500147,505186,825203,238228,091201,676212,238205,881227,778159,257167,834108,300

83,700

145,383102,606

Funding

Ratio PBGC Rate*

149%170%182%177%176%176%165%153%159%148%147%132%130%

119%117%

124%

117%

8.50%9.75%

10.75%

9.75%9.75%9.75%8.50%7.50%8.25%7.75%7.25%7.25%6.25%6.40%5.65%7.15%5.30%
APPENDIX B

Data Tables
Table B-1

Payees and Benefit Payments by Size of Trusteed Plan (1996)

System (Plus/Pay 3000), fiscal year calculations, and PBGC Management Reports.

individual items, totals may not equal those in other tables and percentages may not add up to 100 percent.

23,74042,85122,412

116,873

205,876

11.5%

20.8%10.9%56.8%

100.0%

$44.0104.0

82.4

560.2

$790.6

5.6%

13.2%10.4%70.9%

100.0%

$163

212352396

$328

Payees

$103

134232306

$241

Payments

(in millions)

Median

Monthly

Payment

Average

Monthly Pension

Payment
Table B-2

Top 10 Firms Presenting Claims (1985-1996)

el

el

6)

File (9/30/96), PBGC Case Administration System and PBGC Pension Lump Sum System (Plus/Pay 3000).

not add up to 100 percent.

ed on a firm basis and includes all plans of each firm.

with fiscal year date of first plan termination for that firm.

Number of

Plans

3775141

11

16

46

1,0911,137

Number of

Plans With

10,000 or

More Vested

Participants

1210000000404

Fiscal Year

of Initial

Plan

Termination

1991199119861994198619871992198519921992

Claims

(by firm)

$787,529,118

527,797,791495,235,029237,025,697221,920,051221,613,328220,883,318185,735,058127,517,749

117,539,828

3,142,796,9671,493,228,018

$4,636,024,985

Vested

Participants

37,47251,18222,144

6,8868,2088,4034,2399,0555,2125,659

158,460217,969376,429

Average

Claim Per

Vested

Participant

$21,016

10,31222,36434,42127,03726,37352,10720,51224,46620,77019,833

6,851

$12,316

Percent of

Total Claims

(1985-1996)

17.0%

11.4%

10.7%

5.1%4.8%4.8%4.8%4.0%2.8%2.5%

67.8%32.2%

100.0%
Table B-3

PBGC Claims by Industry (1975-1996)

ND CONSTRUCTION

d Products

Products

 Products

mputer Equipment

pment

roducts

laneous Plastics

ng

BLIC UTILITIES

on

D REAL ESTATE

File (9/30/96) and PBGC Case Administration System.

to change as PBGC completes reviewing, establishes termination dates and determines recoveries.

percentages may not add up to 100 percent.

Total Claims

(1975-1996)

$112,465,731

3,643,889,675

61,856,152

455,486,209106,842,444534,212,221213,684,888

28,116,433

1,743,218,826

191,191,742309,280,759

1,563,273,657

1,383,328,488

179,945,169

50,609,57989,972,58522,493,146

140,582,163

$5,623,286,536

2.0%

64.8%

1.1%8.1%1.9%9.5%3.8%0.5%

31.0%

3.4%5.5%

27.8%

24.6%

3.2%

0.9%1.6%0.4%2.5%

100.0%

$752,439

77,407,200

—

4,420,5811,598,934

10,063,877

——

11,662,810

846,494

48,814,504

—

——

1,787,043

11,004,426

282,165

2,821,648

$94,054,921

0.8%

82.3%

—

4.7%1.7%

10.7%

——

12.4%

0.9%

51.9%

—

——

1.9%

11.7%

0.3%3.0%

100.0%

Claims

(1996)
Table B-4

ion of Liabilities, Underfunding, and Overfunding by Funding Ratio (1996)

ustat Data (12/31/95) with adjustments from the PBGC Top 50 process.

ties for all PBGC covered plans — including overfunded plans.

derfunding for all PBGC covered plans.

dollar totals may not add up to totals in other tables, and percentages may not add up to 100 percent.

3 Mortality table and the interest rate that would have been used to purchase an annuty at the beginning of 1996.

Total Liabilities

(in millions)

$1,007

1,3074,453

36,79060,443

125,467288,227260,634136,769

92,77036,02225,929

7,045

16,261

$1,093,125

0.1%0.1%0.4%3.4%5.5%

11.5%

26.4%23.8%12.5%

8.5%3.3%2.4%0.6%1.5%

100.0%

$742

692

1,899

12,83614,56017,99914,954

———————

$63,682

1.2%1.1%3.0%

20.2%22.9%28.3%23.5%

———————

100.0%

Vested Underfunding

(in millions)

Vested Overfunding

(in millions)

———————

$14,565

20,32522,12313,70912,430

4,055

15,400

$102,606

———————

14.2%19.8%21.6%13.4%12.1%

4.0%

15.0%

100.0%
Table B-5

p 50 Companies with the Largest Unfunded Pension Liability (1996)

ation

Co.

r Corp.

ration

nta Fe Corp.

nc.

sion Plan

 Inc.

 Co.

Inc.

poration

Assets

(in millions)

$884

3,407

482465

2,534

329590

4,0762,240

457575737

1,164

603436500

1,122

717423522

1,8321,9311,4101,9191,2651,0441,2512,296

Vested

Underfunding

(in millions)

$1,708

6,250

814750

3,978

512915

6,2983,369

664817

1,0471,622

832600678

1,519

969572696

2,3982,5181,8302,5311,6341,3051,5232,788

$824

2,843

332285

1,444

183326

2,2221,129

208242310458229164179396252148174566587419612369261273492

51.8%54.5%59.2%62.0%63.7%64.3%64.5%64.7%66.5%68.8%70.4%70.4%71.8%72.5%72.7%73.7%73.9%74.0%74.0%75.0%76.4%76.7%77.0%75.8%77.4%80.0%82.1%82.4%

$1,622

5,937

773712

3,780

486870

5,9833,200

631776995

1,541

790570644

1,443

921543661

2,2782,3921,7382,3621,5521,2391,4472,648

$738

2,530

291247

1,245

157280

1,907

960175201257377187134145321204120139446461328443287195196353

54.5%57.4%62.4%65.3%67.0%67.7%67.8%68.1%70.0%72.4%74.1%74.1%75.5%76.3%76.5%77.6%77.8%77.9%77.9%79.0%80.4%80.7%81.1%81.2%81.5%84.3%86.5%86.7%

Vested

Benefit

Liability

(in millions)

Vested

Funding

Ratio

Guaranteed

Benefit

Liability

(in millions)

Unfunded

Guaranteed

Benefit

(in millions)

Guaranteed

Funding

Ratio
pustat Data (12/31/95), 1995 premium payment files and information provided by contacted companies.

unity to review the information. Unless companies provided different information, guaranteed benefits were calculated at 95 percent of vested benefits.

anteed by PBGC is a measure of exposure for the pension insurance program. The list implies no rating or statement of financial condition of the companies. It excludes, whenever

ored outside the U.S. and domestic non-qualified plans.

 interest rate and mortality assumptions that would have been used to purchase an annuity at the end of 1995. Using the GAM83 mortality table, the implicit rate was 5.3%. The

as 7.15% using the GAM83 mortality table. Totals may not add due to rounding.

Table B-5 (continued...)

p 50 Companies with the Largest Unfunded Pension Liability (1996)

.

rp.

cts Co.

Corp.

f America

r

ation

Assets

(in millions)

2,416

987

2,729

949

1,2412,2012,5461,7783,7501,6522,8692,1581,2892,7511,5922,8663,3913,0012,1702,4363,533

69,081

$152,592

Vested

Underfunding

(in millions)

2,9211,1903,6611,1261,4702,5983,0042,0944,4071,9423,3682,530

1,511

3,2091,8473,4593,8953,4352,4442,7103,899

75,536

$183,388

505203933177229397458316658290500372222458255593505434274274366

6,454

$30,796

82.7%82.9%74.5%84.3%84.4%84.7%84.8%84.9%85.1%85.1%85.2%85.3%85.3%85.7%86.2%82.9%87.1%87.4%88.8%89.9%90.6%91.5%83.2%

2,7751,1303,0791,0691,3972,4682,8541,9894,1871,8453,2002,4031,4363,0481,7543,1413,7013,2632,3222,5753,704

71,759

$173,632

359144351121155267308

211

438193331246147297162275310262152139171

2,677

$21,040

87.1%87.3%88.6%88.8%88.8%89.2%89.2%89.4%89.6%89.5%89.7%89.8%89.8%90.3%90.8%91.2%91.6%92.0%93.5%94.6%95.4%96.3%87.9%

Vested

Benefit

Liability

(in millions)

Vested

Funding

Ratio

Guaranteed

Benefit

Liability

(in millions)

Unfunded

Guaranteed

Benefit

(in millions)

Guaranteed

Funding

Ratio
Table B-6

Pension Funding by State and Region (1996)

a

Assets

(in millions)

$102,596

78,816

127

18,605

450

4,534

63

248,410

24,578

2,2859,356

13,095

132,357

50,76015,295

685

50,861

1,6041,0464,981

32,523

434

1,788

237

3,3991,6733,177

162,290

37,922

7,326

77,880

8,381

25,929

4,853

Overfunding

(in millions)

$85,658

65,090

110

16,187

417

3,804

49

216,316

24,064

1,5348,597

11,705

113,273

42,55614,047

540

39,610

1,337

914

3,527

25,225

312

1,341

201

2,7791,4592,515

140,848

30,168

6,658

70,373

6,723

22,845

4,082

$16,938

13,726

18

2,418

33

730

14

32,094

513751758

1,390

19,085

8,2041,248

145

11,251

267132

1,4547,298

122447

36

620214662

21,442

7,754

668

7,5071,6583,084

771

$16,904

11,812

617

3,416

531468

60

146,887

259

2,394

10,26722,46074,58828,914

7,176

828

24,149

570

58

3,261

10,093

933

1,718

101

4,580

313

2,524

158,051

37,400

3,384

81,18613,35420,012

2,714

$19,938

13,483

735

4,336

702618

64

170,322

357

2,810

11,160

25,98082,66237,517

8,6511,186

27,994

690

76

3,949

11,761

1,0411,966

117

5,022

437

2,935

180,527

44,700

4,213

88,510

15,611

24,260

3,232

$3,035

1,671

118

921171151

4

23,435

98

415893

3,5198,0748,6041,475

357

3,844

120

19

688

1,669

108247

16

442125

411

22,476

7,300

829

7,3232,2574,248

518

$105,596

78,573

845

20,523

1,119

4,422

113

386,639

24,421

4,344

19,75837,685

195,935

80,07422,698

1,726

67,604

2,027

990

7,476

36,986

1,3533,306

318

7,8001,8965,450

321,375

74,86910,871

158,882

22,33347,105

7,314

Liabilities

(in millions)

Assets

(in millions)

Liabilities

(in millions)

Assets

(in millions)

Underfunding

(in millions)

Liabilities

(in millions)

$119,499

90,628

744

22,020

981

5,002

124

395,297

24,837

4,679

19,62235,555

206,946

79,67422,471

1,513

75,011

2,1741,1048,242

42,615

1,3673,507

338

7,9791,9855,701

320,341

75,32210,710

159,066

21,73545,941

7,567

OVERFUNDED UNDERFUNDED TOTAL
Table B-6 (continued...)

Pension Funding by State and Region (1996)

Assets

(in millions)

21,342

1,400

556

18,821

297213

66

34,831

702

2,1761,599

30,35415,10412,642

1,425

246396365

31

81,235

156

60,630

1,1851,615

17,649

30

00000

$716,700

Overfunding

(in millions)

18,228

1,163

531

16,045

234190

65

29,670

653

1,6501,312

26,05411,474

9,2171,333

228356312

27

72,264

94

53,225

1,0921,350

16,504

26

00000

$614,094

3,114

237

25

2,767

6322

0

5,161

49

526287

4,2993,6303,425

91174053

4

8,971

62

7,406

93

266

1,145

400000

$102,606

10,848

860288

8,1941,397

7831

29,569

1,114

287

1,656

26,512

4,4102,920

466

1788

910

9

23,985

54

20,352

356

1,7351,488

532

13

03

10

0

$415,349

12,812

1,003

358

9,7461,577

9533

34,403

1,243

307

1,958

30,895

5,0613,290

604

18

109

1,031

9

27,319

60

22,852

456

2,2251,726

636

19

03

16

0

$479,031

1,964

142

70

1,553

180

16

2

4,834

128

21

302

4,383

651370138

1

21

121

0

3,334

6

2,501

99

490238104

60060

$63,682

31,040

2,166

889

25,792

1,811

285

99

64,072

1,8961,9573,270

56,95016,53512,508

1,937

246464

1,343

36

99,583

154

76,077

1,5483,574

18,230

662

19

03

16

0

$1,093,125

Liabilities

(in millions)

Assets

(in millions)

Liabilities

(in millions)

Assets

(in millions)

Underfunding

(in millions)

Liabilities

(in millions)

32,190

2,260

843

27,006

1,693

291

97

64,400

1,8162,4623,255

56,86619,51515,563

1,891

262484

1,275

40

105,220

210

80,982

1,5423,350

19,137

562

13

03

10

0

$1,132,049

OVERFUNDED UNDERFUNDED TOTAL

ustat Data (12/31/95) with adjustments from the PBGC Top 50 process.

3 Mortality table and the interest rate that would have been used to purchase an annuity at the beginning of 1996.

totals may not exactly equal those in other tables or add up exactly across columns.

plan administration.
Table B-7

Pension Data by State* and Region (1996)

a

Plans

293

77

7

151

1536

7

800

3

11

51

128318224

2342

170

14

5

3921

9

17

4

25

5

31

693143

70

186

26

213

55

Plans

$335,907,346

214,037,508

847,388

69,308,095

9,336,964

32,504,561

9,872,830

3,043,212,463

247,439

4,243,804

54,872,508

109,576,769

1,856,937,775

515,471,109

9,249.069

492,613,990135,184,759

9,045,8881,529,175

34,883,72822,670,596

6,564,4376,908,193

856,884

10,286,762

59,414

42,379,682

1,298,094,369

171,549,379

54,532,889

200,304,435

117,494,931

547,989,063206,223,672

$2,085

773

91

867131164

59

8,854

137160533

1,7313,7021,953

508130

2,741

206

87

618473268165

43

402182297

6,4961,923

520

1,240

469

1,712

632

954,112461,663

55,249

309,006

68,49038,81020,894

3,640,006

44,96519,667

398,290488,856

1,009,587

947,290550,598180,753

2,615,696

132,376

31,963

852,110

312,923

293,111

186,187

60,030

341,363220,353185,280

3,907,087

900,385407,179848,238447,950775,657527,678

3,7491,349

197

1,551

216308128

15,956

232372925

2,9706,6463,5421,009

260

5,313

376217

1,167

841478387177792315562

11,049

3,187

963

2,087

792

2,909

1,111

1,862,945

698,196143,554704,722140,292107,666

68,515

7,301,698

163,130

48,939

701,459

1,102,7592,192,4661,657,4011,138,647

296,897

6,101,062

378,462212,069

1,487,746

955,942522,016518,753176,180890,690446,976512,228

6,998,2771,680,239

698,196

1,262,626

678,621

1,647,6131,030,982

$40,897,046

21,430,196

1,866,330

10,483,145

3,258,3862,143,0791,715,910

232,135,082

1,740,741

527,679

8,347,944

37,325,87361,954,71597,025,009

9,610,143

15,602,978

175,779,116

8,004,9672,152,462

106,851,228

26,785,940

3,210,3323,793,5681,317,036

11,013,278

4,220,0298,430,276

206,539,804

20,954,82331,077,403

35,510,11511,253,04293,417,711

14,326,710

Claims Payees Payments Participants Participants Plans

13,403

4,9181,5533,904

934

1,463

631

60,210

508198

2,0039,338

13,40825,891

5,1653,699

40,002

2,5551,029

19,659

5,3351,6221,376

704

2,8571,0093,856

57,205

8,4699,3069,9633,371

21,392

4,704

CLAIMS

1975-1996

COVERAGE

1996

BENEFITS PAID

1996 Underfunded Total
File (9/30/96), Employee Benefits Supplement to the April, 1993 Current Population Survey, and PBGC Case Administration system.

Pension Lump Sum Systems (Plus/Pay 3000), fiscal year calculations.

totals may not equal those in other tables.

stration; benefits and coverage data by state of payee residence.

Table B-7 (continued...)

Pension Data by State* and Region (1996)

Plans Claims Payees Payments Plans Participants Participants Plans

CLAIMS

1975-1996

COVERAGE

1996

BENEFITS PAID

1996 Underfunded Total

80271533

320

107

19

6

14683010

63560

158

4

112

141513

70

—

2,338

129,086,010

86,225,71815,190,34120,238,463

7,302,755

128,733

0

130,130,922

6,543,606

10,376,974

3,602,385

109,607,957

239,199,052

224,180,727

12,616,964

252,370570,642

1,578,349

0

309,776,393

3,203,662

252,335,982

15,090,40234,985,161

4,161,1862,695,222

0

—

$5,623,286,536

944255163350

113

3132

1,626

287

71

204

1,064

461255

4717498013

3,054

35

2,331

179212297

8112

—

26,354

753,331214,334121,217255,401103,005

24,28335,091

1,652,055

232,160

39,178

183,092

1,197,625

365,214

117,553

50,45512,546

110,909

66,386

7,365

2,011,218

36,411

1,484,401

53,427

144,833292,146

36,572

1,097

—

15,936,385

2,013

562301767257

7056

2,774

472163335

1,804

955443

946887

225

38

5,655

58

4,250

376

411

560140

12

—

47,615

1,814,006

368,674355,623783,024199,019

55,46452,202

2,854,776

450,239140,292287,109

1,977,1361,008,142

365,411

104,403

94,615

189,231176,180

78,302

4,619,610

52,202

3,321,095

114,191

303,422828,700

64,387

1,097

—

32,626,000

22,954,09916,695,666

1,165,5334,095,878

748,235

73,084

175,703

28,507,041

5,525,3421,973,5671,838,688

19,169,44424,039,86018,413,100

1,069,920

309,532

2,417,7221,614,690

214,896

52,707,938

169,140

42,098,237

4,290,3592,234,1303,916,0724,131,329

322,400

2,485,888

$790,499,604

8,2535,733

469

1,704

266

3645

8,3741,480

558707

5,6294,3582,544

606

85

580485

58

12,343

38

9,590

954762999

1,073

67

588

205,876
Table B-8

PBGC Maximum Guaranteed Benefits

Security Act of 1974 (ERISA) mandates that the maximum guaranteed amount be adjusted annually based on changes in the Social Security contribution and benefit base.

workers who retire at age 65 or later.

or retirees taking earlier retirement or electing survivor’s benefits.

 plan has adequate resources or PBGC recovers sufficient amounts, a particpant may receive benefits in excess of the maximum guarantee.

Maximum Monthly

Guarantee

Maximum Annual

Guarantee

$1,909.09

2,028.412,164.772,250.002,352.272,437.502,556.822,573.862,642.052,761.36

$22,909.08

24,340.9225,977.2427,000.0028,227.2429,250.0030,681.8430,886.3231,704.6033,136.32
Table B-9

PBGC Premium Schedule

n Years

ning

December 31, 1977

cember 31, 1985cember 31, 1987cember 31, 1990

June 30, 1994

ne 30, 1995ne 30, 1996

ly 1, 1996

Flat Rate

Premium

Variable Rate

Premium

$1.00

2.608.50

16.0019.0019.0019.0019.00

———

$6 per $1,000 of unfunded vested benefits

(Maximum of $34 per participant)

$9 per $1,000 of unfunded vested benefits

(Maximum of $53 per participant)

$9 per $1,000 of unfunded vested benefits

(Maximum of $53 per participant plus 20% of uncapped

variable premium in excess of $53 per particpant)

$9 per $1,000 of unfunded vested benefits

(Maximum of $53 per participant plus 60% of uncapped

variable premium in excess of $53 per particpant)

$9 per $1,000 of unfunded vested benefits

(No maximum)
The Pension Insurance Data Book 1996 was developed by the Corporate Policy and

Research Department and produced by the Communications and Public Affairs

Department, Pension Benefit Guaranty Corporation

NUMBER 1, SUMMER 1997