PBGC not good enough for NASA

HSLD · 06-14-2011, 07:22 PM

Your tax dollars at work: http://www.nytimes.com/2011/06/15/business/15nasa.html

UAL T38 Phlyer · 06-14-2011, 07:27 PM

HSLD:

Isn't the solution obvious?

We need to convince NASA to buy (or merge) with United/Continental.

Any fences for the Shuttle, T-38s, or space station?

EWRflyr · 06-15-2011, 06:12 AM

If you ask me, at least NASA knows how to honor the terms of a contract. I think there are those outside of NASA who could learn a thing or two from them.

Quote:

United Space Alliance, however, has a rare pledge from a different government agency to pay the bill. The National Aeronautics and Space Administration says in its contract with the company that it will cover its pension costs “to the extent they are otherwise allowable, allocable and reasonable.” NASA interprets this to include the cost of terminating its pension plans outside of bankruptcy.

tomgoodman · 06-15-2011, 07:53 AM

Quote:

Federal agencies have been warned for more than a decade against promising to reimburse contractors’ pension and retiree health costs without adequately monitoring plans or how the money is invested.

NASA’s inspector general called contractor health and pension plans a high-risk area in 2000, and told the agency not to “blindly accept the risk.” NASA said it agreed, but was required to use Defense Department staff members to vet contractors’ retirement plans, and the Pentagon did not have enough specialists.

Like the government, ALPA failed to adequately monitor pension funds and require that they be invested in low-risk Treasury or AAA corporate bonds. But those instruments offer a lower yield, and would have required higher contributions from the companies to maintain full funding. It was easier to assume that the bull market would continue, underestimating the risk to retirees and taxpayers.

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