WP: Big Pension Plans Fall Further Behind

[DeepModem Mom]

Big Pension Plans Fall Further Behind
Congress Looks for Long-Term Solution

By Albert B. Crenshaw
Washington Post Staff Writer
Tuesday, June 7, 2005; Page A03


Although the financial markets have been on the upswing recently from their post-boom low, many of the nation's private pension plans have been sinking deeper into the hole, according to new figures from the government's pension insurance agency.

The 1,108 weakest pension plans -- those whose assets are at least $50 million below the value of the benefits they promise -- were short by an aggregate $353.7 billion at the end of last year, figures from the government's Pension Benefit Guaranty Corp. show. That was 27 percent more than the shortfall a year earlier, contrary to the hopes of many that funding would improve as the economy strengthens.

The quest took on new urgency in recent month because of the declining financial health of the PBGC, which is itself underfunded by some $23.3 billion, and questions about the future of the Social Security system, which is the sole source of retirement income for about 20 percent of the nation's elderly.

The Bush administration this year offered a plan that would sharply increase premiums charged to employers that operate traditional pensions.The plan would also tighten pension funding requirements, especially for financially weak employers.

Employer groups say Bush's plan would raise the cost of pensions more than necessary, encouraging employers to terminate even healthy plans....


http://www.washingtonpost.com/wp-dyn/content/article/2005/06/06/AR2005060601712.html

[gumby]

1. There ya go......

How much evidence is necessary?

Bush is attacking his own people. Why won't any 'Prominent' Democratic politician come out and say it.... in plain, simple language all over the airwaves?

ooops.... forgot, the airwaves are GOP owned.

[cornermouse]

2. You don't need pensions if you work till you drop dead...

[Skink]

3. You get to retire for a week....

Then it's hello Walmart.:bounce:

[cthrumatrix]

4. the issue is "underfunding" must be funded with PROFITS which

affect the net income a company reports and how the STOCK MARKET thinks of this company....if the market goes down ...the issue will get even worse...in a hurry.