Pensions Agency Says Deficit Will Grow

[deadparrot]

WASHINGTON - The federal agency that insures private pension plans has concluded that its financial problems could get worse under House and Senate bills intended to strengthen the nation's traditional pension system.

The chairman of the House Education and the Workforce Committee, Rep. John Boehner (news, bio, voting record), said Tuesday that the Pension Benefit Guaranty Corp.'s analysis was "misleading and inaccurate" and that his bill would bring the system needed relief.

The Democratic leader on the committee, Rep. George Miller (news, bio, voting record), said the analysis showed that Democrats were right to oppose the legislation.

The PBGC, taking a mean of 500 random scenarios, predicted that over the next decade its claims would be $2.5 billion higher under the House-proposed bill than under current law. Its claims would increase $3.3 billion under the Senate bill.

http://news.yahoo.com/s/ap/20051011/ap_on_go_ot/congress_pensions