(2004-08-02) Pension Default Crisis

I can't believe there are still Defined Benefit Pension plans out there. All these puppies should have been converted to 401k plans decades ago, but the Labor Union-s wouldn't hear of it. Now we taxpayers are going to end up paying the tab.

Oct update - But the federal Pension Benefit Guaranty Corporation/PBGC, the agency that takes over failed pension funds, usually matches the payments only for workers who retire at age 65 and earn pensions of up to $45,000 a year... At the same time, a growing number of companies are discontinuing their retiree medical benefits, which are not covered by government insurance, and for which companies are not required to set aside money... Executive plans are not insured by the government.