That year, PBGC also paid $226 million in financial assistance to 115 multiemployer pension plans on behalf of 93,525 retirees.

Including those who have not yet retired and participants in multiemployer plans receiving financial assistance, PBGC is responsible for the current and future pensions of about 1.5 million people and insures the pensions of more than 35 million participants in ongoing plans.

As a result, the heaviest target weightings in its portfolio are aimed at investment grade U.S. bonds and money market funds.

[8] As of its April 2019 Investment Policy Statement the agency had approved target ranges for its Investment Trust as follows: Return-Seeking Assets: U.S. Equities, including publicly traded U.S. REITs: 0% to 15% International Equities (Developed and Emerging): 0% to 15% U.S. and International Bonds (High Yield, Developed, and Emerging Markets): 0% to 10% Private Equity and Private Real Estate (from terminated plans): No range specified Liability-Hedging Assets: U.S. Bonds (Nominal and Real) and Money Market: 65% to 90%[8] The investment statement adds that as the funded ratio improves the weighting toward liability hedging assets should also increase, in accordance with the agency's LDI investment strategy.

[9] As of September 30, 2019 the trust's asset allocation stands at 81.72% fixed income investments, 14.82% equity securities, and 3.46% other securities including private equity, private debt, real estate investments, REITs and insurance contracts.

Multiemployer plans are set up by collective bargaining agreements involving more than one unrelated employer, generally in one industry.

An employer can voluntarily ask to close its single-employer pension plan in either a standard or distress termination.

After workers receive promised benefits, in the form of a lump sum payment or an insurance company annuity, PBGC's guarantee ends.

The maximum pension benefit guaranteed by PBGC is set by law and adjusted yearly.

Under the Pension Protection Act of 2006, the Director of the PBGC is appointed by the President and confirmed by the Senate.

Under prior law, PBGC's Board Chairman appointed an "Executive Director" who was not subject to confirmation.

Several large legacy airlines have filed for bankruptcy reorganization in an attempt to renegotiate terms of pension liabilities.

These debtors have asked the bankruptcy court to approve the termination of their old defined benefit plans insured by the PBGC.

The PBGC would like minimum required contributions to insured defined benefit pension plans be considered "administrative expenses" in bankruptcy, thereby obtaining priority treatment ahead of the unsecured creditors.

v. Bildisco, 465 U.S. 513 (1984), the U.S. Supreme Court ruled that Bankruptcy Code section 365(a) "includes within it collective-bargaining agreements subject to the National Labor Relations Act, and that the Bankruptcy Court may approve rejection of such contracts by the debtor-in-possession upon an appropriate showing."

The ruling came in spite of arguments that the employer should not use bankruptcy to breach contractual promises to make pension payments resulting from collective bargaining.

If a creditor is a general unsecured creditor and there is not enough money, they usually are not paid; so as a matter of practical economics, if the downturn in a company's fortunes which resulted in bankruptcy makes the performance of an executory contract less valuable than its breach, the rational company would breach.

After the Bildisco decision, Congress amended the Bankruptcy Code by adding a subsection (f) to section 1113 (effective for cases that commenced on or after July 10, 1984): (f) No provision of this title shall be construed to permit a trustee to unilaterally terminate or alter any provisions of a collective bargaining agreement prior to compliance with the provisions of this section.According to commentator Nicholas Brannick, "Despite the appearance of protection for the PBGC's interest in the event of termination, the Bankruptcy Code frequently strips the PBGC of the protection provided under ERISA.

Thus, the PBGC with a lien that has not yet been perfected at the time of case commencement may find itself in the same position as the general unsecured creditors.

[21] Some of the provisions of the Act that affect the PBGC include: One reason Congress enacted ERISA was "to prevent the 'great personal tragedy' suffered by employees whose vested benefits are not paid when pension plans are terminated.

A classic case of the unfortunate consequences of an underfunded pension plan is the 1963 shutdown of Studebaker automobile operations in South Bend, Indiana, in which 4,500 workers lost 85% of their vested benefits.