Moral Hazard

Condon, Bernard
October 2005
Forbes Asia;10/31/2005, Vol. 1 Issue 6, p28
The article focuses on the factors that may result to the bankruptcy of Pension Benefit Guaranty Corp (PBGC) in the U.S. The company has $62 billion pension obligations in 2004. The company was strained to cover a $286 million gap in pension funds. PBGC was forced to make up a $324 million pension shortfall when Polaroid declared bankruptcy in 2001.


Related Articles

  • The Valuation of PBGC Insurance Premiums Using an Option Pricing Model. Hsieh, Su-Jane; Chen, Andrew H.; Ferris, Kenneth R. // Journal of Financial & Quantitative Analysis;Mar1994, Vol. 29 Issue 1, p89 

    This study applies an option pricing model to empirically derive pension put values for a sample of 176 individual pension plan sponsors insured by the Pension Benefit Guaranty Corporation (PBGC). This study finds that the pension put values for a group of 22 underfunded sponsors were...

  • Pension agency sees much brighter future. Geisel, Jerry // Business Insurance;5/20/96, Vol. 30 Issue 21, p3 

    Examines the outlook for Pension Benefit Guaranty Corporation (PBGC). Reference to the collapse of underfunded pension plans; Pan American World Airlines Incorporated; Warnings about PBGC and its pension insurance program; Statistics on PBGC's deficit; View of Mark Ugoretz of the ERISA Industry...

  • Keeping the PBGC from being the next bailout recipient. BELT, BRADLEY D. // Pensions & Investments;8/4/2014, Vol. 42 Issue 16, p12 

    The article looks at the financial position of the U.S. Pension Benefit Guaranty Corp. (PBGC). The author expresses concern about the status of the PBGC's multiemployer pension insurance program, saying it is forecast to be out of money in the early 2020s. He offers recommendations which he says...

  • Pension Plan Sponsors Should Heed PBGC Increases, Volatility. Giardina, Michael // Investment Management Mandate Pipeline;3/14/2014, p2 

    The article discusses de-risking techniques for U.S. pension plan sponsors to consider in light of Pension Benefit Guaranty Corp.'s expected increase of employer-sponsored retirement plan premiums in 2014. Topics addressed include the prospects of an unstable market economy, pension liabilities...

  • Limited warranty. Davidson, Amanda // Money Marketing;9/20/2007, p73 

    The article provides an answer to a question on whether it is proper to transfer to another pension provider if the client becomes unhappy with the services offered by his or her provider.

  • Group secures Milacron pension. Geisel, Jerry // Plastics News;6/15/2009, Vol. 21 Issue 15, p3 

    The article reports on the plan of Pension Benefit Guaranty Corp. (PBGC) to take over the pension plan sponsored by Milacron Inc. in Washington. PBGC said that the take over aims to prevent the abandonment of the pension plan after the sale of company assets as part of bankruptcy proceedings. It...

  • Is United Deal the Tip of the Iceberg? Marshall, Jeffrey // Financial Executive;Jul/Aug2005, Vol. 21 Issue 6, p10 

    The article discusses proposed changes to U.S. private pension plans. In 2005 Bradley Belt, executive director of the Pension Benefit Guaranty Corp. (PBGC), called for significant revisions to the pension guaranty system. The changes include tighter funding requirements on plan sponsors,...

  • Chardon Rubber pensions rescued. MOORE, MILES // Crain's Cleveland Business;10/25/2010, Vol. 31 Issue 42, p6 

    The article offers information on the role played by Pension Benefit Guaranty Corp. (PBGC) in taking the responsibility of underfunded pension plan of a Northeast Ohio rubber products manufacturer Chardon Rubber Co., that declared bankruptcy in 2009. It states that PBGC announced that it will...

  • Are Pensions in Peril? Fonda, Daren // Time;5/23/2005, Vol. 165 Issue 21, p21 

    Reports on the ruling that United Airlines Inc., which is operating under bankruptcy-court protection, will be allowed to dump its pension plans on the federal government. Review of how the Pension Benefit Guarantee Corp. will administer the company's pension plans; Suggestion that lower-paid...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics