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Moving on to well cuts elsewhere companies are looking at cutting costs anyway they can in this recession.
In a recent tactic is meant to freeze employee pensions.
-- companies -- announced plans to freeze their pensions already this year.
-- is eighteen in all of 2000 days so what the government trying to do to protect.
Those pensions let's bring in congressman -- -- -- boy from North Dakota congressman ready to being here.
What is your solution what relief for you drafting.
Part of the reason for the pension plan freezing.
Is the funding requirements that congress passed into law shortly before the economy crash.
It takes more of a mark to market approach that in my opinion is advisable.
For pension plan funding.
So we're developing and its storage -- around town not on draft.
That would allow some pension funding relief that would allow them to -- now that there.
Portfolios of been severely reduced in value just like someone's 41 came out of the market.
It will allow them some time to -- -- more times a lot of present law I think that's gonna help these -- keep -- in place.
It's also gonna help these businesses continued to grow at a time of challenging economic times.
However another good should be any I guess requirements of the companies -- if you give them funding relief.
Will you also require them to not freeze the pensions and yet use the savings -- -- close to help the people.
And the pension.
What was certainly want.
-- dimension and maintenance of effort and we want to provide the help but we want them to try and keep the pension in place they can.
We also think that one of that things were looking at this.
It if they.
-- at such a low level of funding that employees are not allowed to take a lump sum distribution.
We think that that same restriction probably ought to applied to the those executives other than non qualified.
Deferred compensation part of that a -- -- companies.
What's -- real question though is if you give companies of funding relief for their pensions.
What are you just delaying the inevitable and essentially.
Bailing them out like Larry I'm gonna go so well let me let me press that a government bailout could happen down the road if the pensions are underfunded.
It's such a good question really gets to the heart of the matter.
I used to be an insurance commissioner overseeing the solvency of insurance company.
And the concept that we had there was -- they've got to have the assets.
That will match the liabilities that firm owns about a pension plan always liability is not just tomorrow all but over many years.
And -- like banks that can't be a run on a pension plan of a firm owes you a pension obligation to your retirement years you can't say I want -- all tomorrow.
-- so pension plans to not have that level of exposure.
You don't have to have cash on hand are the equivalent of cash in this depressed.
Market where the stock valuations held by the portfolio are severely reduced.
You can allow them some time to get well again and hopefully the market will come back and also help in that effort.
Therefore we can give them some breathing room without jeopardizing -- solvency I think you raise an important point this is not about some.
Giveaway of funding requirements is just about making them more realistic to the stream of liabilities -- old over many years.
-- you brought up insurance congressmen and on that note I must ask you about the staff estimated 22 billion dollars of TARP money.
That will go to the insurance companies because.
According to many these insurers are have been woefully under capitalized for a very long time.
Now let me get your reaction to again the government having to come in and help now.
Well you know insurance companies are regulated.
Fairly exacting way and a few.
Would compare sectors you see that the insurance sectors held -- much better than the banking sector.
In my opinion reflecting.
Its more closely regulated status.
Now the number of insurance companies do believe that.
Well -- they ought to have some liquidity relief provided by TARP funds just like the banking sector.
And that has been a decision before this administration.
Where do you draw the line -- it was the banks insurance is next auto makers -- have you noticed -- -- that went over to the administration united.
I I think there are arguments he could make for or against that proposition.
Congressman thank you representative Carl Pomeroy got all of the looking at changing the funny requirements of pensions to keep them from -- and congressman.
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