BANKING & FINANCE - April 15, 1994

Underfunding of Pension Program Up 39.5% in a Year: The Pension Benefit Guaranty Corp. said its pension protection program was underfunded by $53 billion at the end of 1992, the most recent year for which figures are available. That’s up 39.5% from the $38-billion shortfall at the end of 1991, according to the PBGC’s annual report to Congress. The $53-billion shortfall for 1992, first reported in January, is the result of the PBGC’s attempt to cover $11.3 billion of liabilities for pension payments with just $8.4 billion in its fund. While the PBGC has money to cover pensions under financially troubled plans now, it will run into trouble later unless the fund receives more money.