If your 401(k) just melted and your back up plan is a company pension plan, we’ve got some bad news for you, unless you love your job. In that case, we’ve got great news. You’ll never stop working!
Portfolio: It turns out that the federal agency that backstops private pension plans also was hammered by the market meltdown. House Education and labour Committee Chairman George Miller said today that the Pension Benefit Guaranty Corp. lost “at least $3 billion” in stock investments in its trust fund in the 11 months ended Aug. 31.
Miller, a Democrat from California, add that the P.B.G.C. had also invested a “significant portion” of its funds in mortgage-backed securities.
Fortunately, the agency had a gain of $579 million through its fixed-income investments.
P.B.G.C. director Charles Millard will address the fund’s investing strategy when he testifies before the committee on Friday.
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