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>The latest issue of Fortune magazine says employees counting on company
>pensions to help fund their retirements may be in for a rude awakening when
>corporations renege on their commitments and slash pensions benefits by as
>much as half.
>
>It reports the pension plans of the largest American corporations no longer
>have enough money set aside to pay the more than one trillion dollars in
>benefits owing to their current and future retirees. Companies calculate
>their future obligations on the basis of actuarial projections of the
>revenue they expect their plans’ bond and equity holdings to generate over
>time. But the stock market and interest rate plunge have played havoc with
>these projections, and instead of meeting the shortfall an estimated $240
>billion and growing from profits, as required by law, companies are
>slashing benefits and employing creative accounting and auditing techniques
>to disguise future liabilities.
>
>The article describes the accounting subterfuges and regulatory changes
>which are allowing companies to cut the promised retirement income of US
>workers, but, as many of you know, the same pension shortfalls and
>management evasions characterize private and public sector plans in all of
>the OECD countries, the effects of which are certain to be felt over the
>coming decades.
>
>You can access the site directly, or I've posted the article on
>www.supportingfacts.com. Apologies for any cross posting.
>
>MG