wrote in message
ups.com...
It's the Pension Benefit Guaranty Corporation and it is still
technically not taxpayer-funded. All employers with defined benefit
plans pay insurance premiums that in theory will cover the cost of
bailouts, assuming that not too many are needed. UAL does not yet break
the bank but it comes close. Then, as with the S&L crisis, Congress
will end up authorizing a payout from the General Fund.


A real problem with insurance like PBGC (and FDIC) is that the prudent
companies (or banks) end up paying the cost of those who don't contribute to
their employees pensions The real solution is enforcement of contributions
by not allowing deferments.

Mike
MU-2