The Pension Benefit Guaranty Corp., the federal agency that insures worker pensions, could see its deficit balloon to $71 billion in the next decade as companies like UAL Corp.'s United Airlines shed their pension obligations in Bankruptcy Court. To stem the projected deficit, two congressmen have unveiled a bill aimed at shoring up the PBGC while also encouraging employers to maintain their private pension programs. The bill is similar to a proposal the White House made in January, such as hiking the current insurance premium from $19 per worker to $30, but the congressmen conceded that their proposal was more friendly to business.
See "Pension Agency Deficit Could Swell Threefold", Associated Press, Los Angeles Times, June 9, 2005