Subject: Pension Benefit Guaranty Corporation
Bart, you wrote:
> I don't have the details, but there's some
government entity that guarantees
It's the Pension Benefit Guaranty Corporation
(PBGC) created in 1974 as part of the ERISA legislation.
GM has NO LIABILITY for pensions owed to the United
Auto Workers, because that money
Defined benefit pensions are the old fashion type
where you worked for the company for 20 years
Where GM has unfunded pension liabilities is for
the golden parachutes promised top executives.
The Pension Benefit Guaranty Corporation was set
up to insure those defined benefit pension plans
The PBGC doesn't have funding to cover all the
pensions that are being dumped on it. The "premiums"
Remember the Social Security "Lock Box"?
So there's not really any money "missing"; the government got the money and used it to provide tax breaks for the ultra rich.
The real problem is that corporations are using
chapter 11 bankruptcy to avoid statutory requirements
The PBGC is supposed to be the agency that covers
to Bart | Discuss
it on The BartCop Forum | Comment
on it at the BartBlog