UNION PENSION BAILOUT - IVAN OSORIO
Openmarket.org The Growing Threat of a PBGC Bailout
Everyone hates a bailout. Or at least that’s what everyone says, until circumstances force some business leaders to seek them and politicians to grant them — all in the name of saving the free market, of course, by undermining it just this one time. Now the latest bailout threat involves not a too-big-to-fail private company, but a federal agency set up to support a favorite union institution: defined benefit pensions.
The Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures private sector defined benefit pensions, is facing an enormous deficit that threatens to render it inoperable, as it would not be able to take over any more cancelled pension plans. The PBGC is supposed to be financed through premiums paid by insured companies, but that’s never stopped politicians from throwing money at their supporters’ priorities — in this case unions. > Read more at Openmarket.org
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