Sunday, November 30, 2008

Retirement - the next bailout

S&P Companies like GM and Ford are experiencing a gap of more than $200 billion in pension plans. Will taxpayers get stuck with the bill?

"American workers covered by traditional pension plans -- the ones 100% funded and managed by companies for employees -- have so far avoided that sinking feeling.

Unlike the 401(k) crowd, they don't get monthly statements bearing the grim news of the lousy performance of the investments in their pension plans.

But with stocks and bonds crushed, many of these old-school defined-benefit plans now look downright wobbly. If the economic weakness continues long enough, many could end up in the hands of the independent government agency responsible for taking over failing plans."(Michael Brush)

No comments:

Post a Comment