bg-arrow-down icon-arrow-up icon-back-to-top icon-linkedin icon-menu icon-search icon-twitter logo-white slider-arrow-left-gray slider-arrow-left slider-arrow-right-gray slider-arrow-right

Trouble for federal agency that backs 44 million pensions

The Christian Science Monitor
Imagine an insurance company that is facing today a deficit of billions of dollars. But its board of directors has not had a meeting since February 2008.

Meet the Pension Benefit Guaranty Corp., a federal agency that takes over underfunded pension funds from bankrupt companies and pays their retirees.

Going into this year, the PBGC was running a deficit of $10.7 billion as the premiums set by Congress and paid by on-going companies were less than the payments to retirees. Then, on Wednesday it said for the first half of 2009, the deficit had ballooned out to $33.5 billion, the largest in PGBC history. Now Congress, who has oversight over the entity, is worried about what might happen if some really large corporation۝think auto industry۝dumped pension liabilities on the PBGC. Some outside experts can envision a future deficit as high as $100 billion.

For more information, contact Novantas Marketing

+1 (212) 901-2772


Please enter your email for verification: