Advancing a Free Society

The “Other” Pension Crisis

Tuesday, March 8, 2011

With so much attention on state/local pensions, there has been comparatively little attention to the systemic underfunding in employer-provided pensions that is threatening the fiscal stability of the PBGC pension insurance system.  My paper explains three potential approaches to addressing this underfunding and preventing a taxpayer bailout:

  1. Equipping PBGC with the tools needed to fill the funding shortfall;
  2. Transitioning to a private system of compulsory pension insurance;
  3. More fully disclosing the potential costs of a taxpayer bailout of PBGC.

Read Charles Blahous’ paper, The “Other” Pension Crisis: Options for Avoiding a Taxpayer Bailout of the PBGC.