White House offers plan for pension system

[True_Blue]

The Bush administration Monday proposed raising company premiums nearly 60 percent as part of a plan to rescue the federal agency that insures pension benefits for one out of five U.S. workers.

The federal Pension Benefit Guaranty Corp. saw its long-term deficit widen by more than $11 billion last year to a record $23 billion, largely because it has had to assume massive new obligations at US Airways and United Airlines, which have sought bankruptcy protection.

The agency, which guarantees the benefits of the 34.6 million workers who have single-employer “defined benefit” pension plans, has $62 billion in long-term liabilities and only $39 billion in assets.

In a speech at the National Press Club, Labor Secretary Elaine Chao said the system “is not in immediate danger of collapse.”

more....
http://www.msnbc.msn.com/id/6809620/

[MADem]

1. I'll bet the fine print

involves work houses and poor houses....

[JDPriestly]

2. Why don't they admit

that the Social Security crisis is just the tip of the iceberg. The economy is falling apart. Neither the public nor the private sector is going to be able to support those of us over 60 once we are really feeble and old. I hope to stay healthy and continue working as long as I can. It isn't easy considering how much age discrimination there is out there.

[Name removed]

3. Deleted message

Message removed by moderator. Click here to review the message board rules.

[hollowdweller]

4. Amen brother! I know a HELL of a lot of folks that SS is ALL they are

going to have. I'll say it again I think Democracy is a good thing, but I don't think the current thinking that unregulated capitalisim will solve all problems is realistic but a hell of a lot of people are buying it.

[SharonAnn]

5. They've allowed corporations to underfund their pension plans for

years and now the predictable result has occurred.

Executives set up company pensions that are fully funded and protected so that even in bankruptcy they cannot be lost.

For the regular workers, though, they short-change everything and when they spend the company into oblivion they can't cover the employee pensions.

Unfortunately, the companies that are left will be paying for themselves and the bad companies that have folded with underfunded pensions.

In other words, they've stolen about everything else so now "on to Social Security".

[IthinkThereforeIAM]

7. Bingo...

...! eom

[54anickel]

6. Oh good grief! That should push the few remaining companies that

even HAVE a pension plan into high gear to switch over to defined contribution plans (401Ks). Cripes they MUST need new inflows to the markets badly!

Meanwhile, he's got the corporate back covered.

"The administration proposal did not include any provisions for changing the laws that allow companies to avoid their pension obligations if they go into bankruptcy reorganization."