Administrations Proposals to Reform the Federal Governments Pension Benefit Gu

Cover Administrations Proposals to Reform the Federal Governments Pension Benefit Gu
Administrations Proposals to Reform the Federal Governments Pension Benefit Gu
United States Congress House Committee On Ways
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Kleczka. That is the point that I was trying to make not only to you, but I just came over from the Banking Committee be- fore I got on this committee, and I think all of us in this room real- ize what happened to the FSLIC, and for the last year I was on that committee, every year was more and more and more.
And it wasn't that we were bailing out failed S&Ls, but we were making good on the Federal promise. And the pension funds that we are guaranteeing through the PBGC carry with it an identic
...al or similar Federal guarantee.
And naturally we are not going to close down all industry in this country and have a $50 billion liability, but if in fact things would go from worse to worser, there is a possibility that we could be looking at $20 billion or $10 billion or whatever amount above and beyond what you have in-house and to take care of the benefits they would have to be made up by the taxpayer.
Aiid I think the point I am trying to make is to point out the need for this legislation so we address over the next 5 years those plans which are causing us heartburn, which could provide for the fund to be in serious jeopardy.


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