Thursday, December 30, 2004

More Government Debt

The government took on more debt today, when the Pension Guaranty Corporation took over United Airlines' pension plan.

The government calculates that United has promised its pilots pensions worth $5.7 billion in today's dollars, though the pension plan has just $2.8 billion in assets. Of the $2.9 billion shortfall, the pension agency said it will shoulder $1.4 billion by taking over responsibility for paying the covered portion of the 14,000 participating pilots' benefits.


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