17 October, 2005
Government's Disgrace
Government's Disgrace: "Defined-benefit pension plans in companies nationwide are underfunded to the tune of $450 billion, and ultimately taxpayers may be on the hook for some of that. It's obvious that globalization is putting huge competitive pressure on old-line corporations -- the type most likely to have defined-benefit plans -- and that many of these may go bankrupt. It's also obvious that, with the coming baby bust, past pension promises can't be swept under the carpet anymore. And yet, however obvious, politicians are too corrupt and cowardly to tackle the problem."
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Good post Wally. This is just the tip of the iceburg! The Pension Benefit Guarantee Corporation who insures these bankrupt pension plans can only operate at present levels for about 15 years because Congress has been too cowardly to raise premiums. This does not take into consideration the number of pension defaults expected, just what is on the books now. Pension plans are in far worse shape than Social Security. As baby boomers retire they will begin to withdraw from their 401K plans; no more free money for an over-rated stock market either. We are headed fast and furious for a serious recession at best and our Congress has the nerve to debate a permanent repeal of the estate tax for the wealthy?
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