AN INCREASING number of insolvent companies on both sides of the Atlantic are threatening to overburden government safety nets indended to provide for employees who have lost some or all of their retirement savings.
Today's FT reports the US Pension Benefit Guaranty Corporation - the US government-sponsored insurance scheme - is concerned it may have to dig even deeper into its pockets after United Airlines announced last week it would cease making contributions to its underfunded pension scheme while under bankruptcy protection. If United Airlines' pension scheme defaults, it would be the largest by a US employer and would widen the Guarantee Corporation's deficit by 50%. In the UK, similar scenarios are expected. British government officials are currently in talks with trustees to car part mak...
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