|The Real Truth !|
New York, NY -
According to sources who need to remain anonymous for obvious reasons, the Pension Benefit Guarantee Corporation, the federal agency that insures 31,000 private pension plans, suffered a 3.6 billion dollar shortfall in 2002, the largest in its 28 year history. If present trends continue the PBGC could wipe out its reserves in less than two years, leaving over three million retired Americans with worthless pension plans.
The PBGC had a surplus of $7.7 billion in 2001, so the $3.6 billion deficit in 2002 represents a staggering change of $11.3 billion in income over just one year. Given the PBGC's present assets of about $25 billion it could be bankrupt before the end of 2004 unless it sharply raises the premiums it charges American companies to insure their pension plans. Due to poor economic conditions, however, many companies may be unable to pay sharply higher premiums.
Reportedly the PBGC's sudden reversal in fortunes is due to a record number of under funded pension plans at bankrupt corporations. The largest pension plan failure came last year with the bankruptcy of American giant LTV. The failure of LTV's pension plans alone cost the PBGC $1.85 billion.
This is THE REAL TRUTH !
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