Boston Globe (April 23)
The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”The Pension Benefit Guaranty Corporation (PBGC) receives small premiums from corporate pension plans. In return PBGC ensures that workers receive their benefits even if their employer goes bankrupt. Congress needs to raise these premiums to put “the corporation on more solid footing.” Doing so will protect the 44 million Americans covered by company pension plans “and spare taxpayers another costly bailout.”
BBC (October 27)
The French National Assembly will vote on President Nicolas Sarkozy’s proposal to raise the retirement age from 60 to 62. Most French agree pension reform is essential, yet the measure is explosive. Massive strikes crippled the country and Sarkozy’s approval ratings fell below 30%. The strikes and protests appear to be abating, with employees back to work at 5 of 12 oil refineries. However, a BBC correspondent reports, “the last skirmishes of this battle will still be dangerous both to the government and the economy.”
The French National Assembly will vote on President Nicolas Sarkozy’s proposal to raise the retirement age from 60 to 62. Most French agree pension reform is essential, yet the measure is explosive. Massive strikes crippled the country and Sarkozy’s approval ratings fell below 30%. The strikes and protests appear to be abating, with employees back to work at 5 of 12 oil refineries. However, a BBC correspondent reports, “the last skirmishes of this battle will still be dangerous both to the government and the economy.”
The Economist (October 14)
American states like California are facing crippling budget deficits. As if things aren’t bad enough, the Economist points to a massive $3 trillion hole: public-sector pensions. States have been underfunding pensions to police, fire fighters and other civil servants. Overly generous benefits and an unrealistic assumption of 8% asset growth have contributed to the staggering pension shortfall. “American states have promised their employees benefits they can’t afford.”
Tags: Assumptions, Benefits, Pensions, Shortfall, States
