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Report: Supporting carmakers' pension plans could strain group on Thu Apr 23, 2009 7:16 pm
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WASHINGTON – Should General Motors and Chrysler be pushed into bankruptcy and are unable to support retirees’ pension plans it could create an unprecedented strain on the government-sponsored corporation that guarantees those benefits.
report from the nonpartisan General Accounting Office released today noted that GM’s and Chrysler’s plans are currently underfunded by about $29 billion – a fact that if they fall back on the Pension Benefit Guaranty Corp. to support could “pose considerable financial uncertainty” to its ability to remain viable.
Created by the government, the PBGC charges the pension plans it backstops – should they end – insurance premiums. According to its Web site, it “protects the retirement incomes of nearly 44 million American workers in more than 29,000 private-sector defined benefit pension plans.”
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report from the nonpartisan General Accounting Office released today noted that GM’s and Chrysler’s plans are currently underfunded by about $29 billion – a fact that if they fall back on the Pension Benefit Guaranty Corp. to support could “pose considerable financial uncertainty” to its ability to remain viable.
Created by the government, the PBGC charges the pension plans it backstops – should they end – insurance premiums. According to its Web site, it “protects the retirement incomes of nearly 44 million American workers in more than 29,000 private-sector defined benefit pension plans.”
Read More
