The pension insurance flaw of ERISA

McGinn, Daniel F.
December 2004
Pensions & Investments;12/13/2004, Vol. 32 Issue 25, p12
The article discusses about the provision for plan termination insurance in Employee Retirement Income Security Act. That insurance, overseen by the Pension Benefit Guaranty Corp., became a basic part of the Employee Retirement Income Security Act of 1974 and contributed to the decline in defined benefit plans. Initially, the teeth in the provision on plan termination insurance were linked to a corporation's net worth. But those teeth weren't sharp enough for thousands of firms with little or no net worth that terminated plans.


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