Underfunding

Troubled companies usually have troubled pensions, if they have pensions at all. Bankrupt giants such as General Motors Co., American Airlines Inc. and LTV Steel were hampered by billions in unfunded pension liabilities. Then there’s J.C. Penney, whose financial problems have made headlines for months.

Put a pile of money on the table before thousands of retirees from two major carmakers. Will they grab it? Or do they skip it and stick with their regular monthly check?

As executives at corporate defined benefit plans figure out whether they gained more than they lost in pension legislation approved by Congress June 29, one clear winner emerges: Uncle Sam.

General Motors Co. (GM)’s deal to cut pension obligations by $26 billion and shift plans to Prudential Financial Inc. (PRU) is poised to fuel more transfers as U.S. firms face a retirement-funding shortfall the size of Greece’s debt.