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IPFS News Link • Pensions

Lawmakers Leak Plan For $3 Billion Pension-Fund Bailout

•, Tyler Durden

While public pensions funds have hogged most of the media spotlight, Congress has been quietly taking steps to address a more vulnerable sector of the pension space. To wit, a bipartisan group of lawmakers sneaked a provision into this year's budget deal that established a committee to decide how to prevent the retirement benefits of 1 million Americans from evaporating once thousands of failing "multiemployer" plans finally collapse into insolvency.

That committee was given a deadline of Nov. 30 to propose a solution. And while many ideas have been bandied about (including raising fees, levies and contributions on healthy plans to subsidize their failing cousins), from the beginning, it's difficult to imagine how this $500 billion shortfall (the aggregate underfunding of these corporate pension plans, according to an estimate from Boston College) could be covered without the American taxpayer footing the bill.