There are many articles today regarding the PBGC’s deficit reaching a record $8.8 billion as of August 31st. This from Steven Kandarian, executive director of the PBGC, speaking to the U.S. Senate Special Committee on Aging at a hearing entitled “America’s Pensions: The Next Savings and Loan Crisis?” The Wall Street Journal reports: “Federal Pension Agency Shows Wider Deficit.” (Subscription required.) Newsday.com also reports: “Deficit at Pension Insurance Agency Soars.” You can read Mr. Kandarian’s testimony here. You can actually view the hearing at this link and read other testimony at the hearing as follows:
- Scott Macey, Former Chairman of the ERISA Industry Committeee (“ERIC”) and current ERIC Board member
- Barbara D. Bovbjerg, Director of Education, Workforce, and Income Security for the Government Accounting Office
- Mark J. Warshawsky, Acting Assistant Secretary for Economic Policy for the U.S. Department of the Treasury
- David C. John, Research Fellow for the Thomas A. Roe Institute for Economic Policy Studies, Heritage Foundation
On the health care front, the Wall Street Journal also has this: “Your Health Plan’s New Math: Many People Must Rethink Benefit Choices This Year As Firms Revamp Options.” The article discusses how employers have been “[s]tung by what is expected to be the fifth consecutive year of double-digit increases in health-care costs” and that “many employers are aggressively revamping their offerings — dropping old options, adding new ones and making subtle but important changes” in their health plans. The article focuses on how employers like International Paper and Lockheed Martin are shifting to “consumer driven” health care approaches.