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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Win-Lose-Draw who wrote (183979)	7/26/2002 10:41:24 PM
From: BDR	Read Replies (1) \| Respond to of 436258

"how are they funded?" dol.gov The PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974 to encourage the continuation and maintenance of private defined benefit pension plans and provide timely and uninterrupted payments in the case of terminated plans, while maintaining premiums and operating costs at the lowest levels consistent with statutory responsibilities. >>> I take that to mean that they are basically a pension insurance company funded by premiums paid by the defined benefit pension plans they insure. I don't know whether the taxpayer is on the hook if premiums aren't sufficient to cover underfunded pensions, but I have an idea what the answer is to that question.

To: Win-Lose-Draw who wrote (183979)	7/26/2002 10:43:53 PM
From: Alias Shrugged	Read Replies (2) \| Respond to of 436258

Corporations sponsoring defined benefit pension plans pay a premium annually to the PBGC composed of two parts, a fixed per head charge and a variable premium based on how well (or how poorly) the Plan is funded. I left the business in 1997, so I am not familiar with the current health of the PBGC. But, if things unfold as expected here in The Zone, the PBGC will be swamped with claims and have insufficient assets. Ok, all together now, let's hold hands and buy an SUV. -gg-