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A public health crisis is no time for private pension bailouts

Rachel Greszler  |  March 26, 2020

By Rachel Greszler, includes “… The notion here is essentially that plans could arbitrage low-interest taxpayer-backed loans into higher-risk investments, such as stocks, to improve their plan funding. Not surprisingly, considering these are loans to insolvent entities, the Congressional Budget Office estimated a roughly 80% default rate, with the overwhelming majority of plans receiving assistance still becoming insolvent. … The recent market decline shows precisely why it’s absolutely inappropriate to use taxpayer dollars to invest in the market—especially in an attempt to dig out of debt.” 

Read the full article on: The Heritage Foundation

 
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