From
here:
The Pension Benefit Guaranty Corp. Taxpayer-funded bailout program said these two companies were among the subsidiaries of St. Louis-based Falcon Products that filed for bankruptcy protection in January of this year.
The PBGC Taxpayers, which insures private defined-benefit pension plans, said that a bankruptcy court has ruled that the companies met all the criteria under federal law to transfer their pension liabilities to the pension insurance programTaxpayers.
The PBGC estimates that together the two pension plans being taken over are 44 percent funded, with about $26 million in assets to cover nearly $59 million in benefit promises. The agency said it Taxpayers will be liable for $31.6 million of the $33 million shortfall. (Edits, emphases mine)
Question: why doesn't the
taxpayers government just take on
all pension plans. Where's the incentive for these corporations to keep these plans solvent?
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