Is there enough money in most large corporate pension funds to cover their obligations? 3rd Quarter

Nest EggThe joke is that as of 1996 the large corporations are saying there’s too much money in their pension funds. There’s a bill in both the House and Senate. The House Bill will allow private companies to go into their pension funds and take up to 30 billion dollars of that money and spend it, based on the assumption that we only have 2.6 percent inflation, which is the same assumption that the Administration is using. The big corporations and municipalities are saying to Washington, “If you use a 2.6 percent inflation rate to factor your budget, then we get to use that 2.6 rate to factor our pensions.” It’s incestuous. The numbers being passed back and forth are going to get everyone in trouble eventually.