doth the run on uncles pension backstop cometh soon ?

 will the ponzi  love train 
   stop here now 

in one huge final pile up

 or chug on a while longer 
    taking on more and more refugees 
   till a later 
      bridge too far 
    gives way  under it ?

----------------------------

here's uncle slam's 
hired and appointed ginkery
telling us 

" get ready freddie "

get ready 
to take
a possible 12 figure 
privateer off load 

thanks  corporate amerika 

nice 
citizen moron dunking  ....


===========================

"the federal agency 
that insures pension plans 
said yesterday that its deficit
 already at the highest
 in its history 
had doubled
 in its last fiscal year 
to $23.3 billion.

Over a 12-month period, 
the agency, 
the Pension Benefit Guaranty Corporation, 
incurred losses of $12.1 billion,
 according to the agency's 
audited annual report 
for fiscal 2004


The agency,
 created in 1974 
to be the federal safety net 
when pensions fail 
has now lost an average
 of $10 billion a year 
for the last three years,
 
----ie it went into  deficit 
some time early last year
 or late the prior year 
 after taking loses 
that finally  exceeded reserves--------  

The mounting losses
 come at a time 
when the agency is responsible 
for paying the pensions 
for more than one million people
 covered by pension plans that
have already  failed.

 The Pension Benefit Guaranty Corporation 
is paid premiums by companies 
that offer traditional pension plans.

 But it does not have 
the legal authority
 to raise those premiums
 or take other fundamental steps
 to bring its finances back into balance.

 Such measures would have 
to be enacted by Congress. 

Congress, however,
 has not addressed the problems 
of America's pension system 
in a comprehensive way 
since the late 1980's,

 when a number of large steel companies 
with traditional pension plans defaulted.

 
any true pension reform 
will be costly to someone 

- either companies, 
workers 
or the federal government.

Experts warn 
that waiting will not make
 the troubles go away. 

The system of regulating and insuring 
traditional pensions
 called defined-benefit pensions 
is increasingly resembling 
the system that did the same 
for the savings and loan industry 
two decades ago. 

in the end, the entire S&L system 
collapsed in 1989 
and Congress had to authorize 
a federal bailout
 that cost about $200 billion.

In announcing the pension agency's 
latest financial results,
 Mr. Belt, the executive director, 
said that it was not 
running out of cash. 

With reserves of $39 billion,
 he said,
 it should be able
 to keep sending 
retirees their pension checks 
"for a number of years," 
even if Congress does nothing.


--- wow is this nutz
  talking as if 
there will be
  no further plan  defaults
you figure it
0ne milion pensioneers
say 12 k a copy
thats 12 bills per
now theres annual premium payments of x 
and new defaults additional pansioneers of y
well lok no way to make sense here
typical
 no full cycle  picture
a table with 10 entries 
would give much more
insight  then this quote comment quote shit
the mass media way  
journalism for effect only   ---------



 The pensions owed retirees
 measure $62.3 billion in today's dollars.

Unless the agency 
finds a way to close
 the gap 
between the $39 billion 
that it has 
and the $62 billion that
 it owes,
 it will run out of money 
at some point.

----- one way or other already 
  hence the leads number of 
   23 billion 
dat momma ain't in the hopper -----------

 In that case, 
 either retirees 
will be denied their benefits

--- what no legal right here ?
s&l had it in black and white
up to 100k in deposits
guarenteed  
but oh those were depositors 
not wage geeps -----------

 
or else Congress 
      will have to
 appropriate money for a bailout

---or some of both --------------

belt said the agency now faced 
$96 billion worth of risk from companies 
that are "reasonably possible"
 to default on their pension promises.

 The comparable number a year ago 
was just $82 billion.

-- get this now its 23 bills 
plus 93 bills in the woods
going up at the rate of 14 bills per annum 

try this on
minus premiums 
 yet to be paid by remaining plans
we need a nice little 
see you later 
calculator here

wheres my gal eve  ------

The pension agency identifies
 such companies by looking at 
their corporate credit ratings, 
together with the weakness 
of their pension funds.

The agency does not identify 
the companies whose pension plans 
it expects to take over. 

-- no moodys does the credit thing ----------

US Airways three pension funds 
alone 
are expected to cost 
the agency $2.1 billion.

 And United Airlines, 

 recently announced 
that it would terminate
 all four of its pension plans 
  this 
 will cost the agency
 an estimated $6.3 billion
 
   
In addition to the premiums 
it collects from companies,
 the pension insurance program
 receives the assets 
from the failed pension funds 
it takes over and invests them

---- ok like whats that figure 
 and is it neted in or is  out 
of the 93 billion might make
 big exposure diff right? -----

 It does not currently receive money
 from income tax receipts

------- nor ever will
at least  directly
only uncles credit card 
will be used to bail this barge -----

The insurance premiums 
have not been increased since 1994 
and are thought to be inadequate
 relative to the amount 
of insurance coverage 
companies receive.
----- ain't that line priceless----------

 United Airlines, for instance,
 has paid about $50 million 
in insurance premiums
 over the years,
 for coverage 
of its $6.3 billion claim

-- feature creature alert:
 that alone  oughta fuckin
 get the 13  closest overseeing
     congress men deballed by starving ratz  -------------

 Companies with pension plans 
that do not have adequate funds 
 pay higher premiums 
than companies with strong plans.
But that  does 
not account 
for  
 the most important sign 
of whether the plan will 
collapse or not:

 the company's own health.

A strong company 
with an unhealthy pension plan 
poses nowhere near
 the risk 
of a weak company 
with an unhealthy pension plan.


----------- this is gobble de gook
 too obvious 
and yet to wrong headed 
to be here 
no reason to over load a fast slider

the whole premium structure 
is too low 
and by intent
it surely always has been
 ain't that always
 the wally boyz way
shit klan
you know 
uncle sam's
always  a real 
high stakes risk taker
when "street" types
are  playin'
  hiz  cards  for him--------------
---------------------


 experts have suggested finding
 a way to distinguish
 between weak 
and strong companies

---" ahh  yes invent wheels
          now 
  lets see 
  theres lots of shapes 
  we could try 
 there's  square theres...." ---------------

 and charge higher premiums 
to the companies 
that pose greater risk.

-- non sense by then its too late idiot ------ 

------

p.s.
imagine we're to believe
  it took till now 
30 years after its foundation 
to come up with a plan 
to get risk and premiums right
even after the 89 dust ups 
that actual hit this out fit too
with a few big pension blow outs 
and this article ends by
whipping the losers 
a plan 
to accelerate a crashing corporation's 
 dive in  chapter eleven 
where it hands  off the whole fund to uncle 

what else ya got for uz bell-head 

shit 
 no one's that stupid 
not even a washington loopacrat ----------


====================================
ps more to the point 

WASHINGTON—The Pension Benefit Guaranty Corporation's insurance program for pension plans sponsored by a single employer incurred a net loss of $12.1 billion in fiscal year 2004, according to the agency's financial statements released today. The program's fiscal year-end deficit increased to $23.3 billion from $11.2 billion a year earlier. For the first time, the total number of people owed benefits by the PBGC passed 1 million and the total amount of benefits paid passed $3 billion.

"The PBGC is committed to protecting pension benefits, and with $39 billion in assets we can continue to meet our obligations for a number of years," said Executive Director Bradley D. Belt. "But with more than $62 billion in liabilities, it is imperative that Congress act expeditiously so that the problem doesn't spiral out of control. The Administration proposed an initial set of pension reforms last year, and today's report highlights the need for comprehensive reforms that ensure pension plans are better funded."

The PBGC's single-employer program insures the pensions of 34.6 million Americans in 29,600 plans. Of the $12.1 billion net loss for 2004, the two biggest factors were a $14.7 billion loss from completed and probable pension plan terminations and a $1.5 billion charge for actuarial adjustments due to a change in mortality assumptions. Partially offsetting the single-employer program's losses were premium income of $1.5 billion and investment income of $3.2 billion. Overall, including the assets of terminated plans for which PBGC became trustee during the year, the single-employer program had $39.0 billion in assets to cover $62.3 billion in liabilities as of September 30, 2004.

In addition to losses booked, the PBGC calculates "reasonably possible" exposure, an estimate of the amount of unfunded vested benefits in pension plans sponsored by companies at greater risk of default. The 2004 financial statements estimated PBGC's reasonably possible exposure at $96 billion, up from $82 billion a year earlier.

"While the economy is improving, pressures on the pension insurance program are expected to continue," Belt said. "These challenges warrant prompt action. When Congress reconvenes, the Administration will submit a comprehensive proposal that strengthens the funding rules, rationalizes premiums, enhances transparency, and provides new tools to protect the insurance fund."

The PBGC's separate insurance program for multiemployer pension plans posted a net gain of $25 million in fiscal year 2004, resulting in a fiscal year-end deficit of $236 million compared to a deficit of $261 million a year earlier. The multiemployer program covers 9.8 million participants in nearly 1,600 plans. The improvement in the program's financial condition is due largely to a decrease in loss from future financial assistance to multiemployer plans and an increase in investment income. The multiemployer program has about $1.1 billion in assets to cover $1.3 billion in liabilities.

For both programs combined, the total number of participants owed or receiving PBGC benefits in 2004 reached 1.1 million, up from 934,000 the previous year. Total benefit payments rose to $3.0 billion from $2.5 billion. The number of underfunded plan terminations rose to 192 from 155.

The PBGC's financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The financial statements for fiscal year 2004 received an unqualified audit opinion. The audit was performed by PricewaterhouseCoopers LLP under the direction and oversight of the agency's Inspector General.

PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits for more than 44 million American workers and retirees participating in more than 31,000 private-sector defined benefit pension plans. The agency receives no funds from general tax revenues. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by PBGC's investment returns.