House Passes Pension Reform Bill

摘要

Now that the House passed its pension reform bill, H.R. 2830, and the Senate passed its version, S. 1783, the two bills will go to conference. They are similar in some respects but different in others. Both bills raise the premiums that companies pay to the quasi-public Pension Benefit Guaranty Corporation (PBGC), which picks up a portion of pensions when a company defaults. With its liabilities already exceeding its assets and the airline and auto industries in rocky condition, the PBGC's financial future looks even worse, raising concerns about the need for a congressional bailout, which would be politically unpalatable.