Reply #49: Pension Deficit Is Expected to Surge (quadruple in 10 years) [View All]

[54anickel]

http://www.latimes.com/business/la-fi-pension16sep16,1,4564560.story?coll=la-headlines-business

WASHINGTON — The government agency that guarantees worker pensions could see its deficit quadruple over the next decade, jeopardizing the benefits of millions of retirees, a new report says.

In a report made public Thursday, the Congressional Budget Office estimated that the Pension Benefit Guaranty Corp.'s shortfalls would reach nearly $87 billion over the next decade, up from about $23 billion in 2004.

The report also predicted that the pension insurer's deficit could rise to $119 billion in 15 years and $142 billion over 20 years as it is forced to take over pension plans in the airline, steel and other troubled industries.

"Based on this report, the choice is either for pensioners to lose over $100 billion in promised retirement benefits or for taxpayers to get slapped with a $100-billion bill for failed private pension plans. Neither is acceptable," said House Budget Committee Chairman Jim Nussle (R-Iowa).

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The new Congressional Budget Office estimate "would be bad news for taxpayers under any circumstances," said the Budget Committee's top Democrat, John Spratt of South Carolina. "But the news is even worse because of record federal budget deficits that are growing larger with the costs of Katrina relief and the war in Iraq."

What did Snowball just say earlier again? :eyes:
Yet another Raygun legacy

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