U.S. pension guaranty chief resigns

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B25AC1099%2DB4BB%2D4F0C%2D967D%2DDA88C93F0798%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The chief of the U.S. Pension Benefit Guaranty Corp. announced his resignation Thursday, as efforts continue in Congress to shore up the financially troubled government agency.

"This past two years has been a particularly tumultuous period for the PBGC," executive director Bradley Belt said in his resignation letter to President George W. Bush.

Belt's departure comes at a critical time for the agency, which is facing a massive financial shortfall thanks to bankrupt airlines and other companies shifting their pension liabilities to the government.

The PBGC reported a $22.8 billion deficit for 2005. Congress is working on legislation to shore up the agency's funds. The agency is funded through insurance premiums it collects from employers in return for the pension protection.

...more...

[Demeter]

1. Sounds Like The Pensions Are Hitting the Fan

He must be semi-intelligent and ethical, if he could only stick Bush for 2 years...

[havocmom]

2. default on pensions = more corporate welfare

more abuse of workers

more assult on the middle class

more burden on present and future tax paying wage earners

just SOP for big corporations

Hope all you young Americans love your elders... we will be homeless soon.

[katinmn]

3. I bet they spent the pensions on the war

and Belt doesn't want to be the scapegoat.

[UpInArms]

5. or maybe Snow looted that fund last month to pay the deficit

just prior to the increase in the National Debt by the GOPpiggies.

[raccoon]

6. Ding, ding, ding! we have a winner. nt

[DUHandle]

4. Wasn't it

borrowed from before the debt ceiling went up?

[banana republican]

7. PBGC RESIGNS; FREDDY MAC RESIGNS; IS THIS ECONOMIC KAHUNA??? N/T

[doc03]

8. If I make it to 62 I will collect a pension from the PBGC

if it's not out of business by then. I have another pension plan that I got a letter on a few days ago. They have asked the IRS to waive their pension funding the next 2 years. Their pension plan is 90% funded so they can get a waiver on funding for 2 years for that reason, now what will that do, it is already underfunded by 10 % after not funding it for the next 2 years it will be underfunded by even more. Then guess what happens, the company will then file bankruptcy and dump their underfunded pension on the PBGC. I know that's the plan because that is exactly what the company did with the first pension we lost. As far as the Congress trying to shore up the PBGC, that is total BS they are setting it up for failure. They now let companies in the manufacturing
sector (where most of the pensions the PBGC insures)use the longer life expectancy of white collar workers in funding the pensions thereby setting them up to fail, in addition to the underfunding by letting them waive the funding. Once the PBGC asks for a bailout the Republicans will say it's not the governments job to pay for peoples pensions just as they say about health care. (Socialism)

[Miss Chybil]

9. I'm sure companies continue to pay their stockholders

even though they shift their pension promises to the taxholder, right?

[quaoar]

10. Belt Quits As Chief Of PBGC (Pension Guaranty Board)

Jumping ship before it sinks?

http://www.forbes.com/2006/03/23/belt-pgbc-pensions-cx_cn_0323autofacescan08.html

London -- Belt snaps: Bradley Belt, the chief of the impecunious Pension Benefit Guaranty Corp., announced Thursday that he will step down at the end of May. Belt revealed his intentions to leave in a resignation letter to President George W. Bush.

"This past two years has been a particularly tumultuous period for the PBGC, which has had to confront unprecedented operational, financial and policy challenges," Belt wrote in his resignation letter. No reason was given for his planned departure on May 31, nor was there any indication given as to what Belt hopes to do after he leaves the agency.

Belt's departure doesn't quite solve the problem of who bails out the bailer. The PBGC, a 31-year-old insurance fund set up by Congress and paid for by premiums from corporate pension plans, is already technically insolvent and is augured to run out of cash entirely in 16 years unless lawmakers act.

It insures the pensions of some 44 million workers, and reported a $22.8 billion deficit for 2005 as big airlines and other cash-depleted companies in bankruptcy foisted their pension liabilities on the agency: The most recent waifs and strays rattling at its door have been Northwest Airlines (nasdaq: NWAC - news - people ), Delta Air Lines (nyse: DAL - news - people ), and Delphi (nyse: DPH - news - people ). The PBGC's deficit is expected to grow to as much as $91 billion in 20 years, according to the Congressional Budget Office.