New Tug of War Over Excess Pension Cash - NYTimes March 3

[Coastie for Truth]

Link: http://www.nytimes.com/2005/03/03/business/03pension.html

Article about "reversions" from corporate "defined benefit" ERISA pension plans. Basically, the companies want to be allowed to dip into the pension plan funds -- like they were in the 1980's glory days of mergers and acquisitions.

<snip>

A return to "reversions" - the removal of surplus money from pension funds - gives chills to pension rights advocates, who can recall the bitter fights waged over surplus pension money in the 1980's. Companies then had the ability to retrieve excess pension money more freely than now, and pension funds came to be used repeatedly to finance corporate raids - and the raids were often followed by layoffs and other cutbacks. As a result, Congress imposed a 50 percent excise tax on pension reversions in 1990. That was steep enough to make surplus pension money lose its allure.

Now consulting firms and business organizations say the excise tax should be lifted, or at least reduced. They are responding to the Bush administration's proposal to establish stricter pension funding standards.

<snip>

Am I missing something? How does "responding to the Bush administration's proposal to establish stricter pension funding standards" end up being a call for looser pension funding standards by allowing "reversions."

[EC]

1. Just like anything else with this administration

it's ass backwards....

[Dr.Phool]

2. I worked for Republic Steel

Back in the '80s when they were bought out by LTV Steal (I know). They used the Republic Pension Plan to fund the takeover.

When LTV went belly-up, the underfunded pension went to the PBGC. Everyone had reduced benefits.

[Coastie for Truth]

3. I grew up in the Monongahela Valley and Pittsburgh

it happened all around the Steel Valley. They used the pension fund to finance thetake overs -- then they walked.