Financial trouble for pension guaranties. - Posted by Brent_IL
Posted by Brent_IL on October 15, 2003 at 16:19:42:
I came across this today while meandering across the net.
When I suggest that a still-to-come outbreak of an “unknown” virus will wipe out aging baby boomers, thus negating the need for expensive government-backed services, my family tells me that I’m paranoid. To me, it seems logical. But, I digress.
Think some folks are going to be having a hard time keeping the ancestral home? How about the impact of the shortfall on the disposible income of young wage-earners looking for their first home?
?PBGC Deficit Grows As Legislators Fear Taxpayer Bailout
New figures show that the Pension Benefit Guaranty Corp. (PBGC) is plunging into deepening financial trouble, prompting lawmakers to express fears that taxpayers may ultimately end up picking up the tab for the pensions of the 20 percent of private sector employees with defined benefit retirement plans, CongressDaily reported. PBGC’s deficit has grown to a record $8.8 billion as of Aug. 31, PBGC Executive Director Steven Kandarian told the Senate Aging Committee at a hearing yesterday.
Senate Aging Committee Chairman Larry Craig (R-Idaho) said he was worried that taxpayers might end up bailing out the troubled traditional pension system in the same way that they had to bail out the savings and loan industry in the 1980s. “Of course, the details of the pensions and the S&L situation differ in many ways,” he said. “But the result could eventually be the same if we do not engage in thoughtful consideration of the issues at hand.” To view the hearing, point your browser to http://aging.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=35.?