News Summary: US pension insurer runs $34B deficit

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Associated Press

Posted on November 16, 2012 at 8:05 PM

Updated Friday, Nov 16 at 8:06 PM

DEFICIT HITS RECORD: The federal agency that insures pensions for more than 40 million Americans last year ran the widest deficit in its 38-year history.

THE NUMBERS: The Pension Benefit Guaranty Corp. says its deficit grew to $34 billion for the budget year ended Sept. 30. That compares with a $26 billion shortfall in the previous year. Pension obligations increased by $12 billion last year, to $119 billion.

TROUBLING TREND: The agency has run deficits for 10 straight years. If the trend continues, it could struggle to pay pension benefits without an infusion of taxpayer funds.

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