The federal government’s backstop for troubled pension funds is
facing a record-setting deficit, increasing the likelihood of a
taxpayer-funded bailout.
The Pension Benefit Guaranty Corporation (PBGC), which terminates and takes over retirement systems for struggling companies, ran up a $34 billion deficit as of Sept. 30, 2012. That figure is triple the $11 billion deficit the agency had at the end of the Bush administration and its $26 billion deficit 2011.
“PBGC has enough funds to meet its obligations for years,” PBGC director Josh Gotbaum said in a statement. “But without the tools to set its financial house in order and to encourage responsible companies to keep their plans, PBGC may face for the first time the need for taxpayer funds.”
Read more: http://freebeacon.com/un-risky-business/
The Pension Benefit Guaranty Corporation (PBGC), which terminates and takes over retirement systems for struggling companies, ran up a $34 billion deficit as of Sept. 30, 2012. That figure is triple the $11 billion deficit the agency had at the end of the Bush administration and its $26 billion deficit 2011.
“PBGC has enough funds to meet its obligations for years,” PBGC director Josh Gotbaum said in a statement. “But without the tools to set its financial house in order and to encourage responsible companies to keep their plans, PBGC may face for the first time the need for taxpayer funds.”
Read more: http://freebeacon.com/un-risky-business/
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