Pension Guarantor's Deficit Widens

[banana republican]

WASHINGTON -- The federally chartered company that backstops private pension plans said its long-term deficit more than doubled in 2004, under pressure from failing airline plans.
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Some experts warned that the problems could grow much worse in coming years, as other companies try to shed their obligations to retirees in order to remain competitive with rivals that have done the same.

In fiscal 2004, which ended Sept. 30, the PBGC took over some 192 pension plans, up from 155 the year before. Analysts said much of the increase in the deficit, however, was due to anticipated losses from just two airlines, US Airways Group Inc. and UAL Corp.'s United Airlines -- each of which has announced their intention to terminate their plans.

The latest PBGC report reflects growing problems with pension plans in many old-line industries, not just airlines but steel and other manufacturing sectors as well. The report likely increases momentum for action in the new Congress to strengthen corporate pension-funding requirements. Possible changes could include raising the premiums PBGC charges companies with less-healthy plans. But the report also raises the odds of an eventual taxpayer bailout that could cost tens of billions of dollars, some experts said..

http://online.wsj.com/article/0,,SB110054027357774292,00.html?mod=home_whats_news_us

[bobo4u]

1. No problem, we'll all be working for Haliburton soon enough.

Problem solved.

[cornermouse]

2. Just another major pillar of the economy weakening

Nothing to see here. Just move on.

[papau]

3. Just more gov bonds to issue - a bit more Fed Debt - what is problem?

Time to expand social services via more Fed Debt.

We need to learn to accept GOP type funding as long as GOP controls everything.

[xchrom]

4. they have warned us about this for a very long time now

i guess they think they're just kidding.