Government pension agency braces for recession

The Pension Benefit Guaranty Corp. already has an $11 billion deficit that seems sure to grow larger as Corporate America suffers through the worst economic crisis since the Great Depression.

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"Every time the economy bounces around, everybody acts like everything is going to collapse and that they should worry about the PBGC, and then things come back," says Dallas Salisbury, president of the Employee Benefit Research Institute in Washington.

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"Barring some absolutely phenomenal gains in the market or what PBGC's new or future investment strategy comes up with, the PBGC will need taxpayer money at some point in time," said David John, a pensions expert at the conservative Heritage Foundation.