PBGC

OK, who has heard of the PBGC? Anyone?

If you have a defined benefit pension plan, you should know what the PBGC is. It stands for the Pension Benefit Guaranty Corporation. This organization helps protect pension plan participants from companies who do not live up to their promises.

There are 1,111 companies that are more than $50 million underfunded in their pension plans. Many employees won’t find out about their pension problems until it is too late.

When a plan is taken over by the PBGC, you stop accruing benefits. So if you are still 15, 20, 25 years from retirement, you will only get a fraction of the benefits you were counting on. There are limitations to what the PBGC will be responsible for. To make matters worse, for the fiscal year of 2005, the PBGC had a net financial position of negative $23 billion! What happens if the PBGC doesn’t recover from this deficit?

Pensions are quickly becoming a thing of the past.
When will the American worker say enough is enough? Aren’t you tired of being taken advantage of by corporate America? How did companies continue to underfund their pensions and get away with it? Look at the latest news, the Delta Air Lines Inc. Pilots Retirement Plan covering 13,000 active and retired pilots was just absorbed by the PBGC. This plan was underfunded by $3 BILLION. How can these things happen? When is enough, enough?

To learn more about pensions, visit www.givemebigmoney.com/pensions.html