Pension Shortfalls Drop To $279B

Underfunded pension plans reported a total shortfall of $278.6 billion in the latest government filings, down from $305.9 billion the previous year.

Airlines and steel companies still are among the industries with the biggest shortfalls. Overall, 1,050 underfunded plans reported $641.8 billion in assets to cover $920.3 billion in retirement benefits and other liabilities, said the Pension Benefit Guaranty Corp.

The 2003 reports were due April 15, but only pension plans that were underfunded by more than $50 million were required to file. PBGC by law cannot identify the companies sponsoring the underfunded plans.

At the airlines, 11 companies reported a total deficit of $31 billion in plans covering 444,000 participants. In the steel industry, seven companies had a shortfall of $6 billion in plans covering 213,000 participants.

Since PBGC was created in 1974, the airline and steel sectors have accounted for more than 70 percent of the agency's claims, though they have just 5 percent of pension plan participants.

The data is being released earlier than ever before as part of an overall agency strategy to publicize the funding crisis building in the nation's private pension system, and PBGC also wants changes in laws to let workers and retirees know more about the state of their plans' finances.

"Workers and investors have a right to know the financial status of pension plans," said Executive Director Brad Belt.