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2019 Actuarial Report
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Table of Contents

Overview of Valuation Results 3

 Single-Employer Program 

 Seriatim at FYE Method 6

 Seriatim at DOPT Method 7

 Nonseriatim Method 7

 Missing Participants Program 11

 Collins Settlement 11

Multiemployer Program 12

Actuarial Assumptions, Methods, and Procedures 14

Data Sources and Assumptions 21

Valuation Statistics 22

Reconciliation of Results 27

Statement of Actuarial Opinion 29
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ACTUARIAL VALUATION REPORT- 2019 FISCAL YEAR 

The 2019 Annual Report of the Pension Benefit Guaranty Corporation (PBGC) contains a summary 

of the results of the September 30, 2019 actuarial valuation. The purpose of this separate Actuarial 

Valuation Report is to provide greater detail concerning the valuation of future benefits than is presented 

in PBGC's Annual Report.

Overview of Valuation Results

PBGC calculated and validated the present value of future benefits (PVFB) for both the singleemployer and multiemployer programs and of nonrecoverable future financial assistance (NRFFA) under 

the multiemployer program. Generally, except for the changes in interest, mortality and expense 

assumptions, we used the same methods and procedures as in 2018 for the Single-Employer and 

Multiemployer Programs. These calculations reflect the present value of claims as of the date of the 

financial statements. They present a snapshot of the liabilities as of a point in time and do not include 

liability projections over the period subsequent to the date of the financial statements. 

For the single-employer program, the liability as of September 30, 2019 consisted of:

(1) $113.5 billion for the 4,965 plans that have terminated; and

(2) $173.0 million for not-yet-identified probable terminations.

Liabilities for "probable terminations" reflected reasonable estimates of the losses for plans that are likely 

to terminate in a future year. These estimated losses were based on conditions that existed as of PBGC's 

fiscal year-end. Management believes it is likely that one or more events subsequent to PBGC's fiscal 

year-end will occur, confirming the fact of the loss. In addition, the liability for reasonably possible 

terminations has been calculated and is discussed in a note to the financial statements of PBGC's 2019

Annual Report. 
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For the multiemployer program, the liability as of September 30, 2019 consisted of: 

(1) less than $500,000 for 10 pension plans that terminated before the passage of the 

Multiemployer Pension Plan Amendments Act of 1980 (MPPAA) and of which PBGC is 

trustee; 

(2) $2,807.0 million for estimable post-MPPAA losses due to financial assistance to 85

multiemployer pension plans that were currently receiving PBGC assistance; and 

(3) $65,187.7 million for probable estimable post-MPPAA losses due to financial assistance to

106 multiemployer pension plans that were probable to receive PBGC assistance in the 

future. 

The results of the valuation (the present value of future benefits and nonrecoverable future financial 

assistance) are presented in Table 1 and are displayed in the graphs on pages 9 and 10.
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Table 1:

Present Value of Future Benefits and Nonrecoverable Future Financial Assistance – 2019

Number

of Plans

 Estimated

 Number of

 Participants

 (in thousands)

 Liability

 (in millions)

I. Single-Employer Program

 A. Terminated plans

 1. Seriatim at fiscal year-end (FYE) 4,478 998 $75,934

 2. Seriatim at DOPT, adjusted to FYE 128 216 22,779

 3. Nonseriatim0F

1 359 217 14,623

 4. Missing Participants Program (seriatim)1F

2 -- 28 116

 Subtotal 4,965 1,459 $113,452

 B. Probable terminations (nonseriatim)2F

3 0 0 173

 Total3F

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 4,965 1,459 $113,625

II. Multiemployer Program

 A. Pre-MPPAA termination (seriatim) 10 * $**

 

 B. Post-MPPAA liability (net of plan assets)

 1. Currently receiving assistance 85 96 2,807

 2. Probable for assistance 106 1,193 65,188

 Total 201 1,289 $67,995

 *Fewer than 500 participants

** Less than $500,000

Notes:

1) Liability for terminated plans includes an estimated liability of $17 million in settled litigation.

2) The Missing Participants Program refers to a liability that PBGC assumed for unlocated participants in plan 

 Terminations under PBGC’s Expanded Missing Participants Program.

3) The net claims for probable plans reported in the financial statements include $173 million for not-yet-identified probable 

terminations. 

4) The PVFB in the financial statements ($113,100 million) is net of estimated recoveries on terminated plans ($147 million), 

and estimated assets for plans pending trusteeship ($378 million), or, $113,625 million less $0 million less $147 million 

less $378 million = $113,100 million.
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Single-Employer Program

PBGC calculated the single-employer program's liability for benefits for each of the terminated 

plans and for each of the plans considered to be a probable termination using one of three methods:

(1) seriatim at fiscal year-end (FYE);

(2) seriatim at date of plan termination (DOPT), adjusted to FYE; and

(3) nonseriatim.

In addition, PBGC included liabilities for incurred but not reported (IBNR) plans, for the Missing 

Participants Program, and for the Collins Settlement.

Seriatim at FYE Method

The liability for each participant's benefit was calculated separately at FYE for plans for which 

PBGC had sufficiently complete and accurate data. This was termed the seriatim at FYE method. PBGC 

selected plans to be valued using the seriatim at FYE method according to two criteria:

(1) completeness - whether PBGC’s computer system contained enough of the plan’s 

participant records and whether enough of those records had been finalized; and

(2) accuracy - whether the participant's record contained enough of the critical elements of 

data that were necessary to perform an actuarial valuation. 

For this valuation, these criteria were met by 4,478 pension plans (90% of the single-employer 

terminated plans) representing $75,934 million (67%) in liabilities and about 998,000 (68%) participants. 

This was an increase of 149 plans over the 4,329 plans valued seriatim at September 30, 2018.

The critical error rates for 566 plans or 12.6% of the seriatim plans (0.1% lower percentage than 

last year) exceeded 5%. The overall error rate for the group of 4,478 seriatim plans was 1.2%, which is 

a higher percentage than last year. A data error is considered critical if the value of the data element in 

error has a major impact on the liability associated with a benefit record. 
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Seriatim at DOPT Method

There were 128 plans for which a final seriatim valuation as of date of plan termination (DOPT) 

had been completed, but the Office of Benefit Administration of PBGC had not finished processing the 

case as of year-end (e.g., participant data had not been fully loaded into PBGC's computer database, or 

the data lacked too many critical elements to be valued by the seriatim at FYE method). When PBGC 

benefit calculations were finalized but not ready for seriatim valuation as of fiscal year-end, PBGC valued 

the plan's liability seriatim as of the plan's termination date and brought the total amounts forward to

September 30, 2019 using the nonseriatim method outlined below. Because PBGC had finalized and 

valued these benefits for each participant and valued them using PBGC assumptions and regulations as 

of each plan's date of termination, these amounts are more accurate than similar calculations for plans 

whose benefits are not final.

Nonseriatim Method

If calculations of benefits provided by PBGC were not final, PBGC based the liability calculations 

on the plan's most recent actuarial valuation performed before the termination date that is available to 

PBGC. For the 359 terminated plans valued nonseriatim, PBGC obtained the liability for each plan as of 

the most recent available actuarial valuation date for each category of participant: retired, active, and

terminated vested. These liabilities were adjusted to reflect such factors as:

(1) benefits accrued between the valuation and plan termination dates;

(2) differences between the interest rates assumed by the plans' actuaries and those assumed 

by PBGC;

(3) differences between the mortality, retirement age, and expense assumptions used by the 

plans' actuaries and those used by PBGC; and
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(4) the effect on the liability of time elapsed between the valuation date and September 30, 

2019.

PBGC based the adjustment factors used in the nonseriatim procedure on its experience in routinely 

estimating the liability for benefits for administrative purposes. 
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Distribution of FYE19 Single-Employer Liability by 

Method of Calculation

Liability for Benefits: $113,625

(Dollars in Millions)

*Seriatim at FYE includes the Missing Participants Program

**Nonseriatim includes not-yet-identified Probable terminations 

67.0%

20.0%

13.0%

Seriatim at FYE: $76,050*

Seriatim at DOPT Adjusted to FYE: $22,779

Nonseriatim: $14,796**
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Distribution of FYE19 Single-Employer Plans by

Method of Calculation

 Total Plans: 4,965

90.2%

2.6%

7.2%

Seriatim at FYE: 4,478

Seriatim at DOPT Adjusted to FYE: 128

Nonseriatim: 359
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Missing Participants Program

The Missing Participants Program refers to a responsibility that PBGC has assumed under the 

Retirement Protection Act of 1994 to act as a clearinghouse for unlocated participants in standard plan 

terminations. As with other parts of PVFB, only the liabilities are shown here. Because plan 

administrators have transferred a corresponding asset amount to PBGC, the net increase in liabilities of 

PBGC due to this program, if any, will be negligible. Effective January 22, 2018, PBGC revised the 

existing program, as authorized by the Pension Protect Act of 2006, to establish similar programs for 

most defined contribution plans, multiemployer plans covered by the pension insurance system, and 

certain defined benefit plans that are not covered by PBGC guarantees. This valuation incorporates the 

impact of this change. 

Collins Settlement

The Collins Settlement refers to the liability for benefits that PBGC incurred as a result of the 

settlement of a class action lawsuit during fiscal year 1996. This settlement provides benefits for 

participants in plans which terminated between January 1, 1976 and December 31, 1981 without having 

been amended to conform to ERISA’s vesting requirements. The remaining liability under this settlement 

is included in the nonseriatim portion of the liability.
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Multiemployer Program

There was a total of ten pre-MPPAA terminations, nine of which were granted discretionary 

coverage under the provisions of ERISA as passed in 1974. The remaining plan terminated when 

coverage under Title IV was mandatory (from August 1, 1980 until September 25, 1980). PBGC 

calculated the liability for these ten terminations under the seriatim at FYE method using the same 

assumptions as for the single-employer program.

The post-MPPAA portion of the liability represented the present value, as of September 30, 2019, 

of net losses that PBGC expected to incur from non-recoverable future financial assistance to 191 pension 

plans of which 85 were insolvent (i.e., currently receiving PBGC financial assistance) and 106 were 

expected to become insolvent. The liability for each plan was calculated (using the cash flow method) as 

the present value of future guaranteed benefit and expense payments, net of the present value of future 

employer contributions and withdrawal liability payments. This liability was determined as of the later 

of September 30, 2019 and the actual or projected date of insolvency, and then discounted back to 

September 30, 2019 using interest only. The most recent available actuarial reports and information 

provided by representatives of the affected plans served as the basis for the valuations.

Projected benefit payments were estimated based on liabilities, current benefit payments and 

estimated average ages for actives, terminated vesteds and retirees from the most recent actuarial reports, 

combined with assumptions of retirement ages and of future rates of mortality and termination. Projected 

expense payments were estimated as a constant percentage of the projected benefit payments; this 

percentage is equal to the ratio of current expense payments to current benefit payments. The projected 

date of insolvency was then established using a cashflow model with initial assets, expense payments, 

contributions, and projected benefit and withdrawal liability payments as inputs, estimated when 

necessary.

The post-MPPAA liability of $67,995 million as of September 30, 2019 is about $11,842
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million higher than it was a year earlier. The main reasons for the increase in liabilities were due to the 

addition of new plans to the multiemployer inventory, change in liability interest factors, and updated 

data information from new actuarial valuation reports received during the year.
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Actuarial Assumptions, Methods, and Procedures

PBGC continues to review the actuarial assumptions used in the valuation to assure that they 

remain consistent with current market conditions in the insurance industry and with PBGC's experience. 

The actuarial assumptions, which are used in both the single-employer and multiemployer valuations, 

are presented in Table 2A. Assumptions concerning data that were not available are discussed in the data 

section of this report. 

Beginning with the March 31, 2017 valuation, PBGC used forward yield curve interest factors to 

value PBGC’s liabilities. The interest factors so determined for the September 30, 2019 valuation vary 

annually from 2.36% in year 1 to 1.98% in year 31 and beyond. For the September 30, 2018 valuation 

the interest factors vary annually from 2.95% in year 1 to 2.93% in year 31 and beyond. These interest 

factors are dependent upon PBGC’s mortality assumption.

Beginning with the June 30, 2016 valuation, PBGC updated the mortality assumptions by 

adopting the recommendations from a study by an independent consulting firm. The study recommended 

that, when conducting valuations for its financial statements, PBGC use the RP-2014 Healthy Male Table 

times 1.09 and Healthy Female Table times 0.99. The study also recommended that continuing mortality 

improvements be taken into account by using the most recent projection scale available to project these 

tables forward. Beginning with the June 30, 2017 valuation, PBGC updated the valuation systems to fully 

implement using generational mortality tables. PBGC used the adjusted RP-2014 Healthy Male and 

Female Mortality tables each projected generationally with scale MP-2018 for the September 30, 2019

valuation.

The mortality tables used for healthy lives in the FY 2018 valuation are the adjusted RP-2014 Healthy 

Male and Female Mortality tables each projected generationally with scale MP-2017.

Retirement age assumptions were not changed.

The SPARR (Small Plan Average Recovery Ratio) assumptions as shown in Table 2B were 

updated to reflect the SPARR calculated in FY2019. The FY2019 SPARR of 5.77% is used for the 

September 30, 2019 valuation.
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Based on the results of a 2018 study of PBGC’s case administration expenses, a new expense 

assumption was adopted for the 12/31/2018 and subsequent Financial Statements. The new expense 

reserve factors are significantly higher than the prior reserve factors primarily due to increased annual 

expenses, change in discount rate, and increased lag to complete tasks. The reserve factors are static 

and do not assume any future increases or decreases. The factors are intended to estimate a reserve for 

the entire inventory of plans and is not intended to predict costs for any one plan.

PBGC used the expense assumption for expenses in all terminated plans and single-employer 

probable terminations. The reserve for expenses was assumed to be 0.68% of the liability for benefits 

plus additional reserves for cases whose plan asset determinations, participant database audits, and 

actuarial valuations were not yet complete. The factors to determine the additional reserves were based 

on case sizes (large/small), number of participants, and time since trusteeship. The factors used in the 

expense reserve formula are shown in Table 2C.

During the 2019 fiscal year, PBGC improved the system that calculates the liabilities to address 

some of the valuation audit findings surrounding the valuation systems. In this year we have made 

improvements to our ability to value missing participant liabilities, included additional annuity forms, 

improved the accuracy of multiemployer cash flow projections, improved the calculation of shared 

payment QDROs, as well as increased and improved the reports available for the analysis of our results. 

We continue our ongoing efforts to improve the quality of the seriatim data and, as in other years, 

made various changes to generally improve the accuracy, speed, security and auditability of the 

calculations as well as integrate with the evolving PBGC technologies.
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Table 2A

Actuarial Valuation Assumptions

Previous Valuation as of 9/30/18

Interest Factors

Forward Yield Curve:

Period Rate Period Rate Period Rate Period Rate

1 2.95% 11 3.23% 21 2.52% 31 2.93%

2 3.24% 12 3.13% 22 2.46% 32 2.93%

3 3.36% 13 3.04% 23 2.39% 33 2.93%

4 3.37% 14 2.99% 24 2.31% 34 2.93%

5 3.36% 15 2.97% 25 2.23% 35 2.93%

6 3.49% 16 2.97% 26 2.18% 36 2.93%

7 3.48% 17 2.97% 27 2.22% 37 2.93%

8 3.45% 18 2.99% 28 2.34% 38 2.93%

9 3.52% 19 3.06% 29 2.50% 39 2.93%

10 3.43% 20 3.15% 30 2.77% 40 2.93%

Current Valuation as of 9/30/19

Interest Factors

Forward Yield Curve:

Period Rate Period Rate Period Rate Period Rate

1 2.36% 11 2.09% 21 1.92% 31 1.98%

2 1.82% 12 2.11% 22 1.81% 32 1.98%

3 1.87% 13 2.14% 23 1.68% 33 1.98%

4 2.00% 14 2.16% 24 1.55% 34 1.98%

5 2.03% 15 2.17% 25 1.45% 35 1.98%

6 2.18% 16 2.18% 26 1.39% 36 1.98%

7 2.09% 17 2.20% 27 1.42% 37 1.98%

8 2.16% 18 2.25% 28 1.54% 38 1.98%

9 2.20% 19 2.40% 29 1.70% 39 1.98%

10 2.10% 20 2.59% 30 2.00% 40 1.98%
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Table 2A

Actuarial Valuation Assumptions

Previous Valuation as of 9/30/18 Current Valuation as of 9/30/19

Mortality 

 Healthy Lives 

Disabled Lives 

Eligible for Social 

Security (SS) 

Disability Benefits

Disabled Lives Not 

Eligible for SS 

Disability Benefits

RP-2014 Healthy Male Table times 1.09 and 

RP-2014 Healthy Female Mortality Table 

times 0.99, each projected generationally with 

Scale MP-2017.

Healthy Male and Female Mortality Tables as 

described above, set forward 7 years for male 

lives and 8 years for female lives.

Healthy Male and Female Mortality Tables as 

described above, set forward 5 years for male 

lives and 7 years for female lives.

RP-2014 Healthy Male Table times 1.09 and 

RP-2014 Healthy Female Mortality Table 

times 0.99, each projected generationally with

Scale MP-2018.

Healthy Male and Female Mortality Tables as 

described above, set forward 7 years for male 

lives and 8 years for female lives.

Healthy Male and Female Mortality Tables as 

described above, set forward 5 years for male 

lives and 7 years for female lives.

SPARR Calculated SPARR through fiscal year ending 

9/30/18.

Calculated SPARR through current fiscal year 

ending 9/30/19.

See Table 2B for values and notes.

Retirement Ages (a) Earliest possible for shutdown companies.

(b) Expected retirement age (XRA) tables from 29

 CFR 4044 for ongoing companies.

(c) Deferred participants past XRA are assumed to

 be in pay status, retroactive to their XRA.

 To reflect lower likelihood of payment:

(d) Unlocated deferred participants past age 65 are 

 phased out over 3 years.

(e) Located deferred participants are fully phased

 out past age 70.

(f) Deferred participants in the Missing Participants

 Program are phased out over 10 years past age 

70.

Same 

Expenses All terminated plans and single-employer probable 

terminations:

1.37% of the liability for benefits

 plus 

Additional reserves as shown in Table 2C for cases 

where plan asset determinations, participant 

database audits and actuarial valuations were not 

complete.

All terminated plans and single-employer probable 

terminations:

0.68% of the liability for benefits

 plus 

Additional reserves as shown in Table 2C for cases 

where plan asset determinations, participant 

database audits and actuarial valuations were not 

complete.
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Table 2B

Small Plan Average Recovery Ratio (SPARR) Assumptions

The SPARR is used in the calculation of the liability for benefits determined under section 4022(c) of ERISA, 

which provides participants with a portion of PBGC’s recoveries. The SPARR has been determined by PBGC for 

terminations initiated in a given fiscal year based on actual recoveries and unfunded benefit liabilities for plan 

terminations initiated during a five year averaging period. As of the end of fiscal year 2019, the SPARR had been 

calculated for plan terminations initiated in fiscal years 1991-2019. The FY 2019 SPARR is assumed for probable 

plans affected by future SPARRs. 

0BFiscal Year 1BSPARR 2BFiscal Year 3BSPARR

4B1991 5B12.01% 6B10/1/05 – 9/15/06 7B4.13%

8B9/16/06-9/30/06 9B3.50%

10B1992 7.73% 11B2007 12B4.35%

13B1993 7.44% 14B2008 15B4.26%

16B1994 7.04% 17B2009 18B3.85%

19B1995 7.22% 20B2010 21B9.15%

22B1996 7.90% 23B2011 24B12.30%

25B1997 5.98% 26B2012 27B12.56%

28B1998 6.84% 29B2013 30B17.23%

31B1999 8.01% 32B2014 33B4.93%

34B2000 4.58% 35B2015 36B9.29%

37B2001 38B4.94% 39B2016 40B9.39%

41B2002 42B9.60% 43B2017 44B6.92%

45B2003 46B7.86% 47B2018 48B6.84%

49B2004 50B3.42% 51B2019 52B5.77%

53B2005 54B4.39%
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Table 2C

 Reserve Factors for Expenses

(Previous Valuation as of 9/30/18)

Large Plans (more than 100 participants)

Plan Asset

Audit

Participant

Data Audit Actuarial Valuation

Interim Plan 

Processing

Years

Since

Trusteeship

Per Large

Plan

Per Large

Plan

Per Large

Plan

Per Participant 

for the First 100

Per Participant 

for the Next 400 Per Participant 

for >500

Per

Participant

0<=y<1 $23,020 $78,290 $118,640 $1,130 $370 $15 $330 

1<=y<2 15,270 48,470 69,450 660 220 10 190

2<=y<3 12,050 35,970 40,380 380 130 5 110

3<=y 8,570 33,130 31,730 300 100 5 90

Small Plans (100 or fewer participants)

Plan Asset

Audit

Participant

Data Audit Actuarial Valuation

Interim Plan 

Processing

Years

Since

Trusteeship

Per Small

Plan

Per Small

Plan

Per Small

Plan

Per Participant 

for the First 100

Per Participant 

for the Next 400 Per Participant 

for >500

Per

Participant

0<=y<1 $11,500 $21,470 $118,640 $1,130 N/A N/A $330 

1<=y<2 7,320 18,060 69,450 660 N/A N/A 190

2<=y<3 5,550 15,130 40,380 380 N/A N/A 110

3<=y 5,040 11,430 31,730 300 N/A N/A 90

In addition to the reserve factors shown, an expense loading factor equal to 1.37% of the liability for 

benefits applies to both Large Plans and Small Plans. 
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Table 2C

 Reserve Factors for Expenses

(Current Valuation as of 9/30/19)

Large Plans (more than 100 participants)

Plan Asset

Audit

Participant

Data Audit Actuarial Valuation

Interim Plan 

Processing

Years

Since

Trusteeship

Per Large

Plan

Per Large

Plan

Per Large

Plan

Per Participant 

for the First 100

Per Participant 

for the Next 400 Per Participant 

for >500

Per

Participant

0<=y<1 $134,940 $393,310 $190,990 $4,220 $710 $60 $2,680 

1<=y<2 101,520 288,520 146,130 3,230 530 60 2,050

2<=y<3 71,020 200,070 106,100 2,340 390 40 1,490

3<=y<4 47,360 146,880 73,110 1,620 280 20 1,010

4<=y<5 31,850 101,590 46,980 1,040 180 20 650

5<=y 25,480 73,890 33,810 750 120 20 470

Small Plans (100 or fewer participants)

Plan Asset

Audit

Participant

Data Audit Actuarial Valuation

Interim Plan 

Processing

Years

Since

Trusteeship

Per Small

Plan

Per Small

Plan

Per Small

Plan Per Participant 

f h i 100

Per Participant 

f h 400

Per Participant 

for >500

Per

Participant

0<=y<1 $134,940 $49,490 $190,990 $4,220 N/A N/A $2,680 

1<=y<2 101,520 35,430 146,130 3,230 N/A N/A 2,050

2<=y<3 71,020 26,450 106,100 2,340 N/A N/A 1,490

3<=y<4 47,360 22,210 73,110 1,620 N/A N/A 1,010

4<=y<5 31,850 17,150 46,980 1,040 N/A N/A 650

5<=y 25,480 13,190 33,810 750 N/A N/A 470

In addition to the reserve factors shown, an expense loading factor equal to 0.68% of the liability for 

benefits applies to both Large Plans and Small Plans. 
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Data Sources and Assumptions

The seriatim portion of this valuation was based on participant data maintained by PBGC’s Office 

of Benefits Administration. For the seriatim liability, benefit amounts have been determined for each 

participant using plan documents, together with ERISA and PBGC regulations relating to guaranteed 

benefits and the allocation of assets. If specific data were not available for deferred vested participants 

under the seriatim method, participants were assumed to be married and to elect the qualified Joint and 

Survivor (J&S) benefit; wives were assumed to be four years younger than their husbands. When certain 

other data elements for a participant were missing, they were replaced by the average for the plan. When 

the plan average was not available, the average for all plans valued seriatim was used. 

The nonseriatim liability was based on the plan's most recent actuarial valuation performed before 

the termination date that is available to PBGC. The valuation information generally was obtained from 

actuarial reports or Schedule SB or MB filings. For nonseriatim plans and probable terminations, 

provision generally has been made to reduce benefits to guaranteed levels. Attained ages for active 

participants, terminated vested participants, and retired participants were assumed to be ages 53, 53 and 

69 respectively for new nonseriatim plans when plan data were unavailable. For post-MPPAA 

multiemployer plans, the assumed ages are 55 for actives, 56 for terminated vested and 65 for retirees

when the data were unavailable. 
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Valuation Statistics

The FY 2019 valuation for the single-employer program included approximately 1,459,000

participants owed future payments in terminated plans as of September 30, 2019. For the multiemployer 

program, the FY 2019 valuation included, as of September 30, 2019, 22 participants in terminated 

pre-MPPAA plans and approximately 96,000 participants in post-MPPAA plans currently receiving 

financial assistance and 1,193,000 participants in post-MPPAA plans expected to receive financial 

assistance. Of these, about 886,000 participants from terminated single-employer plans and 14

participants from terminated multiemployer plans were receiving benefits from PBGC at fiscal year-end.

The average monthly benefit paid by PBGC for participants in pay status during FY 2019 was 

$559 (including supplemental benefits) for the single-employer program and $122 for the multiemployer 

program in the ten pre-MPPAA plans. 

Tables 3 through 6 summarize the detailed results of the seriatim and nonseriatim valuations for 

both the single-employer and multiemployer programs.
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Table 3:

Liability for Pay-Status Recipients in "Seriatim at FYE" Method

 Single-Employer Multiemployer

 Age

Number of

Benefit

Recipients**

Average

Monthly

Benefit

Average

Supplemental

Monthly

Benefit

Liability 

(Millions)

Percent of

Liability 

Number of 

Benefit 

Recipients

Average 

Monthly

Benefit

Liability 

(Millions)

Percent of 

Liability

Under 50 1,646 $115 $239 $75 *% 0 - $0 0% 

50-54 1,652 253 267 126 *% 0 - 0 0 

55-59 14,266 328 124 1,271 2% 0 - 0 0 

60-64 51,927 391 115 4,841 9% 0 - 0 0 

65-69 128,367 483 232 12,832 24% 0 - 0 0 

70-74 157,538 524 338 14,025 27% 0 - 0 0 

75-79 133,430 565 263 10,163 19% 0 - 0 

0%

80-84 98,749 574 194 5,805 11% 1 157 * 

21%

85-89 64,996 514 94 2,509 5% 3 45 * 

13%

Over 89 43,275 402 112 886 2% 10 141 * 

66%

TOTAL 695,846 $508 $162 $52,533 100% 14 $122 * 100%

* Less than 0.5% or less than $500,000

** Approximately 1% of participants are receiving supplemental benefits.

Note: The liability in this table does not include the liability for the Missing Participants Program.

Table 4:

Liability for Deferred Participants in "Seriatim at FYE" Method

 Single-Employer Multiemployer 

 Age

Number of Benefit 

Recipients**

Average 

Monthly

Benefit

Average 

Supplemental 

Monthly

Benefit

Liability 

(Millions) 

Percent of 

Liability

Number of 

Benefit 

Recipients

Average 

Monthly

Benefit

Liability 

(Millions)

Percent of 

Liability

Under 40 298 $197 $0 $10 0% 0 - $0 0%

40-44 4,714 198 0 170 1% 0 - 0 0 

45-49 18,397 229 73 865 4% 0 - 0 0 

50-54 45,858 302 131 3,240 14% 0 - 0 0 

55-59 72,518 363 138 6,950 30% 0 - 0 0 

60-64 72,149 417 142 8,999 38% 0 - 0 0

Over 64 25,342 331 136 2,688 11% 0 - 0 0 

Other***

62,818 - - - - 479 2% 8 - * 100% 

TOTAL 302,094 $351 $132 $23,401 100% 8 - $* 100%

* Less than 0.5% or less than $500,000 

** Less than 1% of participants (not including others) will receive supplemental benefits.

*** "Other" includes unlocatable participants and participants scheduled at year end for lump sum payments.

 Note: The liability in this table does not include the liability for the Missing Participants Program.
24

 Table 5:

Seriatim at DOPT and Nonseriatim Liability

Plans with Final DOPT Benefits

Number of 

Plans

Liability 

(millions)

Percent of

Liability

A. Large 74 $22,629 60.5%

B. Other 54 $150 0.4% 

Subtotal 128 $22,779 60.9%

Plans with Non-Final DOPT Benefits

Number of 

Plans

Liability 

(millions)

Percent of

Liability

A. Large 102 $13,885 37.1%

B. Other 257 $721 1.9% 

Subtotal 359 $14,606 39.0%

Probable Plans

Number of 

Plans

Liability 

(millions)

Percent of

Liability

A. Large 0 $0 0.0%

B. Other 0 $0 0.0% 

Subtotal 0 $0 0.0%

Total 487 $37,385 100.0%

Notes:

1) Final DOPT benefits refer to those benefits that PBGC has determined and valued seriatim as of DOPT for 

the plan. Non-Final DOPT benefits are estimates of these final DOPT benefits.

2) Large Plans in this table are those whose present value of Title IV benefits at DOPT equals or exceeds $10 

million. 

3) The liability shown in this table does not include the liability for settlements.

4) The liability for Probable plans is shown as a gross amount (i.e., plan assets and collections on employer 

liabilities are not subtracted from the liability for benefits). Also, the numbers in this table do not include 

the liability for not yet identified probable terminations.
25

Table 6A:

Distribution of Single-Employer Liability (including 4022(c)) by Trusteeship Status, Recipient Status, 

and Valuation Method 

(Dollars in millions)

Recipient Status

Seriatim/

Missing

Participants

Nonseriatim/

Collins

Total 

Terminated

Liability

Probables/

IBNR

Total 

Liability

Percent

of Total

Liability

Receiving Payments

Trusteed $52,542

 

 

 $19,984 $72,526 $0 $72,526 63.8%

Pending Trusteeship 3 185 188 0 188 0.2%

Total $52,545 $20,169 $72,714 $0 $72,714 64.0%

Not Receiving Payments

Trusteed $23,505 $16,930 $40,435 $0 $40,435 35.6%

Pending Trusteeship 0 303 303 173 476 0.4%

Total $23,505 $17,233 $40,738 $173 $40,911 36.0%

All Payment Statuses

Trusteed $76,047 $36,914 $112,961 $0 $112,961 99.4%

Pending Trusteeship 3 488 491 173 664 0.6%

Total $76,050 $37,402 $113,452 $173 $113,625 100.0%

Percent of Terminated 67.0% 33.0% 100.0%

Percent of Total 66.9% 32.9% 99.8% 0.2% 100%

Notes:

1) Recipient status for Seriatim, Missing Participants, IBNR and Collins liabilities refers to status as of 9/30/19. For 

Nonseriatim and Probable liabilities, recipient status refers to the status as of the most recent actuarial valuation 

report (date of plan termination if benefits are "final"). The term "final" is defined in the notes to Table 5.

2) The Probable liabilities are shown as gross amounts (i.e., plan assets and collections on employer liabilities are not

subtracted from the liability for benefits).
26

Table 6B:

Distribution of Single Employer Participants (including 4022(c)) by Trusteeship Status, Recipient Status, 

and Valuation Method

(Participants in thousands)

Recipient Status

Seriatim/

Missing

Participants Nonseriatim

Total 

Terminated

Participants Probables

Total 

Participants

 Percent

 of Total 

Participants *

Receiving Payments

Trusteed 696 197 893 0 893 61.2%

Pending Trusteeship 0 4 4 0 4 0.3%

Total 696 201 897 0 897 61.5%

Not Receiving Payments

Trusteed 330 225 555 0 555 38.0%

Pending Trusteeship 0 7 7 0 7 0.5%

Total 330 232 562 0 562 38.5%

All Payment Statuses

Trusteed 1,026 422 1,448 0 1,448 99.2%

Pending Trusteeship 0 11 11 0 11 0.8%

Total 1,026 433 1,459 0 1,459 100.0%

Percent of Terminated 70.3% 29.7% 100.0%

Percent of Total 70.3% 29.7% 100.0% 0.0% 100.0%

Notes:

1) Recipient status for Seriatim and Missing Participants liabilities refers to status as of 9/30/19. For 

Nonseriatim and Probable liabilities, recipient status refers to the status as of the most recent actuarial 

valuation report (date of plan termination if benefits are "final"). The term "final" is defined in the notes to 

Table 5.

2) Participant counts for IBNR and Collins are not included.

* may not add due to rounding
27

Reconciliation of Results

Table 7 reconciles the September 30, 2019 valuation with the September 30, 2018 valuation. It 

shows that the $8,943 million increase in the liability for the Single-Employer program was the net effect 

of:

 (1) increased liability from change in interest factors = $12,270 million

(2) actual benefit payments = ($6,020) million

(3) decreased liability for probable plans = ($4,012) million

(4) change in mortality assumptions = ($32) million

 (5) new plan terminations as of the beginning of the year = $4,583 million

(6) expected interest on liability = $2,950 million

(7) other changes = ($796) million.

The Multiemployer columns reconcile the liability for the post-MPPAA financial assistance to 

insolvent plans. The liability for the pre-MPPAA terminated plans in FY19 is less than $500,000 and not 

included or shown in this table.
28

Table 7:

Reconciliation of the Present Value of Future Benefits (dollars in millions)

Total Single

Employer

Post-MPPAA

Multiemployer

1. Liability at BOY (9/30/18)

(a) Present Value of Future Benefits for all Plans

(b) Liability for Probable Plans (gross liability including unreported)

(c) Liability for Unreported Terminated Plans and other settlements

(d) 9/30/18 Liability for Terminated Plans (a + b + c)

$104,682

(4,185)

(18)

$100,479

$56,153 

(53,759)

0

$2,394

2. Change in Valuation Software

(a) Effect on Liability as of DOPT

(b) Projection of (a) from DOPT to BOY + post-DOPT changes

(c) Total (a + b)

 $0

 18

 $18

$0

(8)

 ($8)

3. Net New Plans and Missing Participant Liability

(a) New Missing Participant Liability

(b) New Termination Inventory as of DOPT

(c) Deletions as of DOPT

(d) Projection of (b + c) from DOPT to BOY

(e) Total (a + b + c + d)

$42

4,491

(1)

93

$4,625

$0

261

0

0

$261

4. Nonseriatim Data Changes and Effect of DOPT Seriatim Valuation

(a) Effect on Liability at DOPT

(b) Projection of (a) from DOPT to BOY

(c) Total (a + b)

($49) 

(9)

($58)

($26)

0

($26)

5. Actuarial Charges/Credits

(a) Expected Interest

(b) Change in Interest Factors

(c) Change in Mortality Assumption

(d) Change in Method (Current Year: Seriatim at DOPT to Seriatim at FYE)

(e) Effect of Experience*

(f) Change in Other Assumptions (Expense, SPARR, PBGCC STD Rates)

(g) Total (a + b + c + d + e +f)

$2,950

12,270

(32)

 99

(480)

(290)

$14,517

$75

297

(11)

0

(12)

0

$349

6. Expected Expense Payments ($126) $0

7. Actual Benefit Payments ($6,020) ($163)

8. Liabilities at End of Period (9/30/19)

(a) Liability for all Terminated Plans 

= (1d) + (2c) + (3e) + (4c) + (5g) + (6) + (7)

(b) Liability for Unreported Terminated Plans and other settlements

(c) Liability for all Terminated Plans (a + b)

(d) Liability for Probable Plans (gross liability including unreported) **

(e) 9/30/19 Present Value of Future Benefits for all Plans (c + d)

$113,435

17

113,452

173

$113,625

$2,807

0

2,807

65,188

$67,995

* Includes change from expected benefits ($6,335 million) to actual benefits ($6,020 million) in Total Single Employer.

 Includes change from expected benefits ($174 million) to actual benefits ($163 million) in Post-MPPAA Multiemployer.

 Actual does not include payments made by employers. 

 

 ** Includes $173 million for not yet identified probable terminations. 

Includes $1,149 million for small reserves Post-MPPAA Multiemployer plans.
29

Statement of Actuarial Opinion

This valuation has been prepared in accordance with generally accepted actuarial principles 

and practices and, to the best of my knowledge, fairly reflects the actuarial present value of the 

Corporation's liabilities for the single-employer and multiemployer plan insurance programs as of 

September 30, 2019.

In preparing this valuation, I have relied upon information provided to me regarding plan 

provisions, plan participants, plan assets, and other matters.

In my opinion, (1) the techniques and methodology used for valuing these liabilities are 

generally acceptable within the actuarial profession; (2) the assumptions used are appropriate for 

the purposes of this statement and are individually my best estimate of expected future experience,

discounted using current settlement rates from insurance companies as determined by PBGC’s 

Policy Research and Analysis Department; and (3) the resulting total liability represents my best 

estimate of anticipated experience under these programs.

I, Scott G. Young, am the Chief Valuation Actuary of PBGC. I am a Member of the 

American Academy of Actuaries, a Fellow of the Society of Actuaries and an Enrolled Actuary. 

I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial 

opinion contained in this report.

Scott G. Young

Scott G. Young, FSA, EA, MAAA

Fellow of the Society of Actuaries

Enrolled Actuary

Member of the American Academy of Actuaries

Chief Valuation Actuary and Department Director

Actuarial Services and Technology Department

Pension Benefit Guaranty Corporation

March 26, 2020