Yes, all fixed benifit pension plans are insured by the US government, in a
similar manner that your savings at XYZ bank is insured by the Federal
government. That's why the government gets involved when pension fund
liabilities exceed pension fund reserves. We are already footing the bill
for some very large pensions that were sponsored by now bankrupt
companies(Huffy bicycles, Big Bear supermarkets, Polaroid, Kaiser Aluminum,
Bethlehem Steel, WestPoint Stevens, Archibald Candy and United Airlines) .
If GM were to go belly up in bankruptcy, they would no longer be liable for
the pensions. I have read that senario would be more expensive to taxpayers
than the Savings and Loan collapse. Here's the article:
http://www.usatoday.com/money/perfi/retirement/2005-11-14-pensions-usat_x.htm
David Riker
davriker@pacbell.net
http://home.pacbell.net/davriker/
http://community.webshots.com/user/fool4mg
----- Original Message -----
From <RBHouston at aol.com>
To: <cyrille@hp.com>; <spritenut@exit109.com>;
>
> All retirement funds are backed by government insurance? I didn't think
> so.
> You will however be paying my social security retirement, for what I hope
> will be a very long time, so thanks in advance.
>
> Robert Houston
> Texan in New Mexico
> 73 Midget
> 63 TR4
> 74.5 MGBGT
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