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Economic Commentary

Is the U.S. Pension-Insurance System Going Broke?

Forty million Americans-about one third of the work force-have private, employer-sponsored pensions that are insured by the Pension Benefit Guaranty Corporation (PBGC). The PBGC is a federally chartered agency that is required by law to pay guaranteed retirement benefits to insured workers who would normally lose their pensions as a result of the failure or inability of an employer to meet its pension-fund obligations.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Buynak, Thomas M. 1987. “Is the U.S. Pension-Insurance System Going Broke?” Federal Reserve Bank of Cleveland, Economic Commentary 1/15/1987.