PBGC makes vultures happy

The Pension Benefit Guaranty Corporation (PBGC) had a shortfall of $23 billion last year. The Congressional Budget Office estimates that the deficit will almost quadruple (to $87 billion) in ten years.

Now, I've spoken before about the impending crisis at PBGC which we, the taxpayers, will be asked to solve with our tax dollars. But, the really galling part of the whole situation is that many of the guys who pass their company's pension obligations to us are actually getting quite rich doing so.

Consider, for example, Bethlehem Steel. In 2002, they passed us $3.7 billion in pensions via PBGC. Wilbur Ross, who eventually bought Bethlehem - without its pension obligation - made a return of 1000% on his investment. (1000% is not a typo). And, Bethlehem is not a unique case. Think Polaroid, US Airways, Cone Mills, WestPoint Stevens and a lot of other companies you've never heard of.

We're getting shafted two ways - an abysmally low amount of money is being paid to PBGC as premiums and the 'turnaround specialists' are making money off of us. Of course, the ones getting shafted the most are the workers, many of whom devoted their lives to a company and now they are being screwed out of a lot of the money due them.