Scorched Earth: U.S. Companies Ask Congress to Suspend Rule on Pension Payments

[deminks]

Smirky's program to leave nothing of value behind.

http://www.bloomberg.com/apps/news?pid=20601014&sid=ar95i3XZyQ8k

Nov. 12 (Bloomberg) -- Almost 300 companies are asking Congress, as part of any economic stimulus legislation, to suspend a requirement that they pay more into their pension funds, saying it may force them to cut jobs.

Pfizer Inc., Boeing Co., Chrysler LLC, Verizon Communications Inc., Kraft Foods Inc. and Cigna Corp. are among the companies that signed a letter to lawmakers saying the economic slowdown has slashed the value of their pension assets, forcing them to make potentially ``huge'' contributions to the pension plans to meet requirements imposed by Congress in 2006.

``When companies desperately need cash to keep their businesses afloat, the new funding rules will require huge, countercyclical contributions to their pension plans,'' said the letter, to be sent today. ``Consequently many companies will divert cash needed for current job retention, job creation and needed business investments.''

Congressional Democrats are urging President George W. Bush to back an economic stimulus package that would provide federal aid to state governments while boosting spending on unemployment assistance, food stamps and infrastructure projects. House Speaker Nancy Pelosi said yesterday she also wants to provide aid to troubled U.S. automakers.

(end snip)

I would wager that the companies are going to lay people off anyway, and the cash from pension funds will go anywhere but job retention. Junkets, anyone?

[old mark]

1. Big bonuses for the execs who put this over,

and I'm sure a few dollars left for some helpful politicians in congress.
(Even Democrats take money.)

mark

[sinkingfeeling]

2. We should all be petitioning our reps. & Senators to keep the 2006 law in effect. There are millions

of retired people dependent on these funds being fully funded.

[JVS]

3. There should be no bailout. The companies should just have to pay in non-cash assets