Companies’ failure to keep their pension promises, experts say, is killing the Pension Benefit Guarantee Corporation, (PBGC) a federal corporation launched in 1974 to insure pension benefits for the nearly 44 million US workers and retirees covered by the plans today.
After being hit hard in 2003 with $9.4 billion in unfunded pension commitments by the struggling steel industry, the PBGC’s obligations currently exceed its assets by $23.3 billion.
And earlier this month, a federal bankruptcy judge cleared the way for United to dump its $10 billion under funded plan on the PBGC, with many workers set to lose as much as half of their allotted pension, creating the largest such default in US history.
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