The US Pension Benefit Guaranty Corp, which insures company retirement plans, determined in 2002 that GS had underfunded its pension by $US44 million. The federal agency, funded by corporate levies, stepped in to cover the basic pension payments, but not the supplement the union had negotiated as a hedge against the plant's closure.
For Joe Soptic, who worked at the plant for 28 years, that meant a loss of $US283 per month, about 22 per cent of his pension. Others lost up to $US400 per month, according to documents supplied by the union.
Comparatively, the GS bailout was one of the pension guarantor's smaller hits. The federal fund swung from a $US7.7 billion surplus to a $US3.6 billion deficit that year as it struggled to cover bankruptcies in the steel and transportation industries. The failure of LTV Steel, for example, cost the agency $US1.9 billion.
The agency's woes prompted Congress in 2006 to require companies to contribute more toward their pensions. Press accounts said this change accelerated the shift away from pension plans toward 401(k)s and other defined-contribution retirement plans that offer less security for workers.
How often did Bain pull this stunt where the taxpayers are forced to bail out the pension plan of a Bain acquisition after Bain strips them clean? I’m sure the Obama campaign knows. I would like to know. Maybe this was rare. But if it happened a lot this kills Mitt as a candidate who can beat Obama