Story Created:
Nov 13, 2009 at 2:41 PM EDT
Story Updated:
Nov 13, 2009 at 2:41 PM EDT
WASHINGTON (AP) - The government insurer of bankrupt companies' pension funds says its deficit this year nearly doubled to $22 billion.
The weak economy put the Pension Benefit Guarantee Corp. on the hook for pensions from 144 new pension plans during the year. Low interest rates also pushed down its future revenue projections.
The PBGC's investments returned 13.2 percent for the year, pulling it back from a record $33.5 billion deficit in May. Last year's deficit was $11.2 billion.
The PBGC is directly responsible for the benefits of 1.5 million workers and retirees.
Their benefits are in no immediate danger, but experts warn that the PBGC's mounting shortfall eventually could require a taxpayer bailout.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
AP-NY-11-13-09 1231EST
