ABI Poll Finds that Special Charge on Consumer Goods Within Ailing Industries Would Not Help Solve the PBGCs Deficit

Submitted by webadmin on Fri, 2006-06-09 00:00

Contact: John
Hartgen

(703) 739-0800

size='3'> SPECIAL
w:st='on'>
size='3'>CHARGE ON
size='3'>CONSUMER GOODS WITHIN AILING INDUSTRIES WOULD NOT HELP SOLVE
THE PBGC’S DEFICIT, ACCORDING TO MAJORITY OF ABI POLL
RESPONDENTS

size='3'>June 9, 2006, Alexandria, Va.
size='3'>—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,
face='Times New Roman' color='#800080'
size='3'>www.abiworld.org
size='3'>. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue.

Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff' size='3'>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
face='Times New Roman' color='#0000ff'
size='3'>http://www.abiworld.org/conferences.html
face='Times New Roman' size='3'>.

Friday, June 9, 2006 - 12:00