Deficit at Pension Insurance Agency Soars ($8.8 billion)

Deficit at Pension Insurance Agency Soars
By THE ASSOCIATED PRESS

Published: October 14, 2003


Filed at 1:00 p.m. ET

WASHINGTON (AP) -- Finances at the government's pension insurance program deteriorated further this past summer with its deficit reaching a record $8.8 billion as of Aug. 31, the agency's executive director told Congress on Tuesday.

The cash-strapped Pension Benefit Guaranty Corp., or PBGC, had previously reported a deficit of $5.7 billion through July.

``If companies do not fund the pension promises they make, someone else will have to pay -- either workers in the form of reduced benefits, other companies in the form of higher PBGC premiums, or taxpayers in the form of a PBGC bailout,'' Steven Kandarian told the Senate Special Committee on Aging.

PBGC is funded with premiums paid by companies that sponsor pension plans. It receives no tax dollars.

more.............

http://www.nytimes.com/aponline/national/AP-Pension-Woes.html

If we can run a $400 billion deficit to finance tax cuts for the wealthy and steal Iraq's oil, we can surely pony up a puny $8 billion to finance the retirement of hardworking Americans, right?

So we will give a "tax cut" to employers - making the PBGC worse off, if either House or Senate Bill is passed.

I wonder how much the PBGC deficit will increase by when the lower "variable" premium collections are factored in?

Funny how we blame everything except Bush Tax cuts, employer paid premium for pension insurance cuts, etc., for the reason all of government is going down the financial toilet as deficits ballon.

Any guesses which it will be? Tax payer bailout is the GOP way. Think Savings & Loan Scandal.