ABI Poll Finds that Special Charge on Consumer Goods Within Ailing Industries Would Not Help Solve the PBGCs Deficit
June 9, 2006, Alexandria, Va. —Sixty-eight percent of respondents to the recent American Bankruptcy Institute online poll disagreed that a possible solution to the Pension Benefit Guaranty Corp.’s (PBGC) deficit woes would be to mandate a special levy on consumer goods within ailing industries such as the airline and automotive industries. More than half of the total respondents (55 percent) said that they “disagreed strongly” with the idea of a proposed mandate for a special levy, such as a $1 ticket fee earmarked for a PBGC insurance fund against future airline pension terminations, as a viable solution for the agency. Thirteen percent of participants “disagreed somewhat” that placing a special fee on consumer goods within struggling industries would help to alleviate the PBGC’s deficit.
Only 21 percent of respondents agreed that a mandated special charge on consumer goods within ailing industries would be a possible solution to make up for the PBGC’s funding shortfall, as 10 percent “agreed strongly” and 11 percent “somewhat agreed.” Ten percent of the respondents did not know or had no opinion on the issue.
ABI membership and members of the public were welcome to submit their response to the statement: “One solution to the PBGC’s deficit is to mandate a special levy on consumer goods within ailing industries such as airlines and autos (e.g., a $1/ticket fee earmarked for a PBGC insurance fund against future airline pension terminations).” The poll was open for voting from May 25 – June 7.
The poll question was based on reports that the PBGC is operating under a $22.8 billion deficit after assuming the liabilities of pension plans of recently bankrupt companies in the airline, automotive and steel industries.
The ABI Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue.
Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.
ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.