In all, the funding deficit jumped by a record $120 billion last month. Read More
Employers will continue to value plan liabilities based on interest rates on top-rated corporate bonds for three different segments, averaged over 24 months. Segments refer to when benefits are paid to participants.Read More
The airline and parent company AMR said they never promised to provide benefits for life and reserved their rights to modify the plans.
General Motors Co., in a statement, said the moves should reduce its U.S. pension liability by about $26 billion, a major step in its bid to reduce the $134 billion pension obligation on its books, which GM says is the largest pension liability for any U.S. corporation.
Among defined benefit plans offered to new hires, 54 percent are hybrid plans such as cash balance plans, which combine elements of defined benefit and defined contribution plans, but legally are defined benefit plans.Read More
Before a plan can be terminated, it needs to have all the funds necessary to pay benefits to employees. Once that happens, plan sponsors can start the process of shutting down the plan.Read More
When individuals take a lump-sum payment rather than continued monthly benefits, Ford no longer will face such risks as paying more than expected if the individuals live longer than expected. Read More
Workers would keep their defined benefit contributions, something that has largely disappeared from the private sector.
The development of the restructuring will set a precedent, particularly at a time when local government budgets and defined benefit plans are under strain.Read More