Bachmann worried about PBGC proposal

U.S. Congresswoman Michele Bachmann says on that she’s worried about a plan to create a special fund in the Pension Benefit Guarantee Corporation (PBGC). She says:

On the heels of last week’s $26 billion spending bill, of which much is going to public sector unions, a new union bailout bill may be gaining traction for discussion this fall.

The context of her points isn’t quite accurate– Polinaut refuted Bachmann’s claims that the spending bill is going to public sector unions.

But here’s what Bachmann’s worried about. It’s Senator Bob Casey’s proposal to use tax money to shore up some underfunded union pension plans. Bachmann cites a recent Wall Street Journal piece. The Journal says:

The PBGC is already significantly underfunded and taxpayers are its ultimate backstop. Yet the Casey bailout could dump as much as $165 billion in new liabilities on the PBGC, while multi-employer plans would get a clean bill of health.

Bachmann says she’s worried that the support of Senator Dick Durbin, Democratic Majority Whip, will give the proposal steam and that it will get voted on by the full Senate and House:

Enough is enough. Democrats have proven time and time again they are not shy when spending your taxpayer dollars, especially when it comes to their union buddies. It is time for Washington to stop the futile bailouts and end the reckless spending spree for good.

The Washington Examiner, a conservative paper, expresses further worries about the plan here.

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