A weak economy and the failed pension plans of several bankrupt companies have increased the financial burden of the government agency that insures pensions for one in seven Americans. The Pension Benefit Guaranty Corporation (PBGC) insures private sector pension plans and takes over retirement benefit payouts when traditional pensions fail. Unfortunately, the little-known federal agency is reporting a record $26 billion deficit for the fiscal year ending in late September. The director of the agency has said that they may "eventually" need a bailout from taxpayers.
Joshua Gotbaum is the director of the Pension Benefit Guaranty Corporation. Louise Story is the Wall Street and finance reporter for The Takeaway's partner The New York Times.