Posted on 11/15/2010 3:16:50 PM PST by Qbert
WASHINGTON (AP) -- The federal agency that insures the pensions of one in seven Americans has stepped up efforts to keep company pension plans from failing, its director said Monday, as the agency reported that its annual deficit increased 4.5 percent to $23 billion.
The Pension Benefit Guaranty Corp. also said it paid $5.6 billion in benefits to participants in company pension plans that failed in fiscal 2010, ending Sept. 30. It noted that 147 pension plans failed, up from 144 a year earlier.
The PBGC's finances have been battered in recent years by the weak economy, which has brought more corporate bankruptcies and resulting failures of pension plans. The agency, which insures the pensions of some 44 million workers, assumes the pension liabilities of some companies in bankruptcy.
The $23 billion deficit compares with a shortfall of $22 billion the previous year. The PBGC said its total obligations increased by $11.5 billion in the latest year to $102.5 billion. On the other hand, the agency has $79.5 billion in assets to pay those obligations.
(Excerpt) Read more at finance.yahoo.com ...
The list, ping
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Did they make the mistake of putting all their eggs in the same basket (treasury bonds), or is the Social Security Administration the only ones stupid enough to do this?
Revenues down...so raise taxes!
I still feel as though we are in the eye of the storm and it could get really bad at any time. I mean, ANY time.
We are all waiting for multiple other shoes to drop. zerO came back to the USA yesterday and he is not in a mellow mood. Neither is his hard core base. I think you are correct that the SHTF could begin in earnest at any time.
However, I do have to add that people seem to be spending. My husband went back to his private massage practice today after 6 weeks off due to an injury and the phone has not stopped ringing at both office locations. My totally unessential hand-manufactured line is having a great 3rd and (hopefully) 4th quarter at the wholesale level. I have even had orders from small shops that have been MIA for 18 months.
Every other day, I wonder “What if this economic policy mess actually works?” The rest of the time, my gut says “It can’t.”
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