The NRLN has been actively pursuing the issue of the U.S. Government's Pension Benefit Guarantee Corporation. The New York Times recently reported that possible pension defaults by major airlines could lead to a national pension scandal comparable to the Savings and Loan debacle of the 1980's and necessitate a multi-billion dollar taxpayer bailout.

It has been less than four months since Congress passed and the President signed legislation that gave companies (like SBC) a temporary pension fund relief through a more liberal formula that saves employers billions of dollars in payments to the Pension Benefit Guarantee Corporation.

(The Pacific Telesis Group Pension Plan had in excess of 10 billion dollars in our pension trust fund when it was merged into the SBC Corporation.) Following the stock market debacle, a reduction in annual payments to the pension trust fund by SBC and a one-time transfer of $300 million from the pension trust to "health benefits," our Pacific Bell Pension Trust Fund was reported at $4,006,126,000.00 as of December 31, 2002. This compared to $6,131,355,000.00 as of January 1, 2002.
(A decrease in net assets of $2,125,229,000.00.)

The NRLN is proposing tighter funding rules for companies whose pension plans are not financially secure, higher premiums for companies at risk of failing to meet their pension obligations and companies should not be allowed to "take" pension trust "surplus" funds as though it belonged to the company and its shareholders. The NRLN Newsletter page can be found by clicking the link below.