The agency which protects the private pension plans of 40 million Americans says it needs “substantial increases” in premiums.
The Pension Benefit Guaranty Corporation receives no funding from taxpayers but instead finances its operations from insurance premiums and other income and assets.
It reports that the fund which would cover any shortfall from failed single-employer pension funds should see improved finances but its multi-employer program – covering 1,400 plans and 10 million participants – will run out of funds in 2025.
The agency warns that it will require premiums to increase to avoid a $53.4 billion deficit. Currently plans operated by insurers pay $27 per participant (indexed to National Average Wage).
For longer-term solvency scenarios assessed by PBGC, premiums may need to rise by between 363 and 552 per cent.
Zurich offloads Taiwan, Morocco units
Global insurance firm Zurich has announced that it has reached agreements to sell two of its business units.
Its general insurance business in Morocco is to be acquired by Allianz which says the deal is a major part of its African expansion plans. Zurich Assurances Maroc is the 7th largest in the country’s property and casualty sector. The firm also has a licence to sell life and health insurance products in the country.
Meanwhile, Zurich’s business in Taiwan is to be acquired by Hotai Motor Company. Zurich issued a statement which said that it did not believed that continued investment in its general insurance business in the country would achieve the necessary operating scale, although it said the market was still an attractive one.
Former insurance agent wins MasterChef Canada
A former insurance agent has taken the title in TV cooking contest MasterChef Canada.
Mary Berg, formerly of Cade Associates Insurance Brokers in Toronto, was revealed as the winner Sunday after 15 episodes of the CTV show. Berg left her insurance job in March after 5 years at Cade and has picked up $100,000 as the winner of MasterChef.