By Tyler Durden
Via Mike Shedlock of MishTalk.com,
The Pension Benefit Guarantee Corporation (PBGC), an entity created to “guarantee” pensions of private corporations, is on the verge of bankruptcy.
Teamsters and other unions are poised to take huge pension hits. Previously, airline employees have taken a hit.
Please consider PBGC Running Out of Cash to Cover Union Pension Funds.
The clock is ticking for 71 penniless union pension funds that rely on a federal insurance company to support their retirees — because the agency itself is also running out of cash, its director said Wednesday.
The Pension Benefit Guaranty Corporation’s limited liquidity is part of the spiraling U.S. pension crisis that threatens to wipe out the retirement savings of more than a million Americans.
The PBGC talked about its reduced circumstances Wednesday as it announced that it is now officially making pension payouts for Teamsters Local 707.
The New York union’s pension fund — covering 4,000 retired truckers across the city and Long Island — hit rock bottom in February.
The PBGC stepped in, as it has with 70 other bankrupt union pensions. But PBGC only has about a decade’s worth of cash in its coffers, director Tom Reeder warned.
Local 707 alone, …read more