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Defined Benefit Plans

Law Will Cut Defined Benefit Pension Contributions, but Increase PBGC Premiums

July 11, 2012
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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.
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American Airlines Asks to End Retiree Health, Life Benefit Coverage

July 9, 2012
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The airline and parent company AMR said they never promised to provide benefits for life and reserved their rights to modify the plans.
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General Motors Co. Offers Pension Buyout to Salaried Workers

June 1, 2012
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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.
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Most Firms With DB Plans to Keep Them Open to New Hires

May 23, 2012
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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.
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Ending a Defined Benefit Plan Takes Shutdown Strategy, Experts Say

May 9, 2012
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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.
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Ford to Offer Lump-Sum Pension Payouts to Ex-Workers

April 27, 2012
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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.
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Illinois' Pension Fix: Workers to Pay More, Retire Later

April 20, 2012
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Workers would keep their defined benefit contributions, something that has largely disappeared from the private sector.
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In an Apparent First, a Public Pension Plan Files for Bankruptcy

April 19, 2012
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The development of the restructuring will set a precedent, particularly at a time when local government budgets and defined benefit plans are under strain.
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