OTHER NEWS - Feb. 27, 1992

Underfunded Pensions Shortfall Widens: The shortfall in pension plans at 80 companies swelled 25% to $40 billion last year, a development that threatens the long-term financial health of the government’s pension insurance plan, said James B. Lockhart, the executive director of Pension Benefit Guaranty Corp. Lockhart also warned of a possible taxpayer bailout unless the nation’s pension insurance plan was reformed. In prepared remarks before a conference on employee benefits, Lockhart said the overall pension scheme is healthy, with $1.3 trillion in assets backing up $900 billion in benefits.