Statement by PBGC Executive Director Bradley D. Belt on Pension Reform Proposal in Administration's Budget Submission
FOR IMMEDIATE RELEASE
February 07, 2005
WASHINGTON- PBGC Executive Director Bradley D. Belt released the following statement today on the President's annual budget submission to Congress, which provides a detailed description of the Administration's pension reform proposal. Relevant documents are available on the Department of Labor's Web site:
"Companies that sponsor pension plans have a responsibility to live up to the promises they have made to their workers and retirees. Under current law, financially troubled companies have shortchanged their pension promises by nearly $100 billion, putting workers, responsible companies and taxpayers at risk. The Administration's proposal would better protect workers and retirees by strengthening the pension funding rules, by prudently increasing premiums sponsors pay to the insurance program, and by requiring more timely disclosure about the financial health of pension plans. We look forward to working with Congress to promptly enact the Administration's proposal."
PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits for about 44 million American workers and retirees participating in over 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.
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PBGC No. 05-23