Towers Watson says this is another step toward refusing PBGC
coverage to plans eligible only in Puerto Rico that don't fulfill all the coverage needs.
director Joshua Gotbaum has pushed back against any attempt by American Airlines to terminate its pension plans, claiming it would saddle his agency with $17 billion in benefit obligations.
In 2004, the American Benefits Council commissioned a study that confirmed that the PBGC
's investment policy was flawed and urged PBGC
to adopt a more growth-oriented strategy by increasing its investments in higher-yielding fixed income securities and equities.
is a federal corporation created under the Employee Retirement Income Security Act of 1974, and it guarantees payment of basic pension benefits earned by members participating in more than 29,000 private-sector defined benefit pension plans.
insures the pension benefits of the 44 million Americans covered by private defined-benefit pension plans.
United Airlines workers will absorb the rest of the losses, because the PBGC
limits maximum benefits to just more than $3,800 a month - far less than United promised to pay some employees, particularly early-retiring pilots.
Despite the dire warning, Ippolito suggests that, to avert an impending crisis, pension plan underfunding can be controlled by transforming the PBGC
into a private insurance program that sets premiums according to the amount of risk plan sponsors add to it.
Executive Director Steven Kandarian said he expects PBGC
"to recover pennies on the dollar," about $200 million of the $2.
began paying guaranteed basic benefits to the funds' beneficiaries; however, these benefits were substantially less than the amounts L had been paying under the plans themselves.
Still, the PBGC
said about two-thirds of the 55,000 insured plans remain fully funded.
Under section 4010, certain contributing sponsors and all members of their controlled groups (referred to in the regulations and hereinafter as "Filers") must submit annually to the PBGC
financial and actuarial information prescribed by the PBGC
justifiably) of past and present pricing and benefits pledges by the PBGC