Pension Program Savings May Be Optimistic

[deadparrot]

WASHINGTON - Of the $65 billion in savings from entitlement programs that President Bush has proposed, one-fourth would come from steps to restore solvency to the federal agency that insures employer-based pension plans.

But experts say the estimates of $16.7 billion in savings over the next five years from reforms to the Pension Benefit Guaranty Corp. may be overly optimistic. They say companies can't realistically be expected to fork over enough in increased payments to reach that goal.

The proposal, part of Bush's budget plan for 2007, assumes larger PBGC premiums "than are likely to be practically or politically feasible," said Douglas J. Elliott of the Center on Federal Financial Institutions.

Both the White House and Congress have advanced plans to assure the financial future of the PBGC, which last year reported a deficit of nearly $23 billion and faces a perilous future as companies with defined benefit plans, especially in the steel and airline industries, declare bankruptcy and shift pension payment responsibilities to the agency.

http://news.yahoo.com/s/ap/20060207/ap_on_go_pr_wh/budget_pensions