by Bill McBride on 10/22/2008 02:41:00 PM
Wednesday, October 22, 2008
From the WSJ: U.S. Pension Benefit Guaranty Loses at Least $3 Billion
The U.S. Pension Benefit Guaranty Corporation [PBGC] lost at least $3 billion in stock investments in the 11 months through August ... It is likely that losses will be "substantially worse" after September results are reported, the committee said.And on Calpers:
The committee says the losses came in the agency's "trust fund," which holds the assets of terminated plans that have been turned over to the PBGC.
[T]he California Public Employees' Retirement System ... said a decline of more than 20% in its assets since June 30 may lead to increased employer contributions to the fund of 2% to 4% starting in July 2010 and July 2011.The PBGC problems might lead to a bailout and will likely lead to higher insurance premiums for pension plans. The Calpers problems are part of a larger looming pension deficit and retirement funding crisis.
At least retirees can rely on the equity in their homes ... (OK, sorry for the snark).
Posted by Bill McBride on 10/22/2008 02:41:00 PM