Free Republic

The federal agency that insures pension plans said yesterday that its deficit had grown from $3.6 billion to $11.2 billion in just a year and that it would try to deal with the escalating problem by overhauling its own investments, among other measures. The agency, the Pension Benefit Guaranty Corporation, said that two consecutive years of record failures by corporate pension plans and continuing adverse market conditions left it with a shortfall much greater than a year earlier, which had been the previous low point in the agency's 30-year history. People briefed on the new investment plan say the agency...

Thu September 4, 2003 11:15 AM ET WASHINGTON (Reuters) - Underfunded pension liabilities at troubled U.S. companies doubled this fiscal year, and could exceed $80 billion with airlines accounting for nearly a third of the deficit, the government said on Thursday. The Pension Benefit Guaranty Corp. also told Congress its deficit has grown to $5.7 billion as of July 31. The deficit for the entire fiscal year ending Sept. 30 last year was $3.6 billion. This gives the U.S. agency less money to bail out any troubled company retirement plans. Airlines, including bankrupt United Airlines Corp. UALAQ.OB , have an...