Profitable plans would pay price for Bush PBGC bailout

Anand, Vineeta
April 2005
Pensions & Investments;4/4/2005, Vol. 33 Issue 7, p2
This article reports on U.S. President George W. Bush's proposal to encourage employers to fully fund their pension plans and shore up the PBGC. The administration's goal was to ensure that companies set aside enough money in their pension plans to cover benefits already promised, thus averting a taxpayer bailout of the Pension Benefit Guaranty Corp., already more than $23 billion in the red. The administration's proposal to erase the PBGC deficit rests on three key elements, an overhaul of funding rules, a restructuring of the premium structure, and more honest accounting by companies of their funded status.


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