 |
||||||
| Tuesday, February 9, 2010 |
Contact Us
|
 RSS
|
|||||
|
|
| |
|||
|
||||||
|
||||||
|
|
ANALYSIS
March 2, 2009
Sagging Index no longer reflects what’s going on in the market, some say, Replacements? Google it, to start.
March 2, 2009
Downward price spiral will actually boost the cost of capital for most companies. CFOS, take note.
March 2, 2009
The latest bailout at AIG could be a preview of how the president will deal with Wall Street.
March 2, 2009
No corporate defaults. Big debt offerings. Percolating CP issuance. Things may be looking up in the capital markets.
|
|
|
|
January 28, 2009 2:26 PM ET
(Pensions & Investments)—The Pension Benefit Guaranty Corp will remain on the GAO’s “high-risk” watch list for 2009, amid concerns that the nation’s economic crisis could lead to more pension plan terminations, and in turn, increase the agency’s budget deficit. The PGBC’s deficit declined to $11.2 billion as of September 30, from $14.1 billion at the end of the previous fiscal year, the Government Accountability Office reported. But it also said the financial crisis had probably eroded the funding of many large corporate plans and lowered the credit rating of many plan sponsors, “developments that the most recent (PBGC) estimates may not reflect.” The PBGC has been on the GAO’s watch list since July 2003. Last year, the PBGC increased its equity and alternative-investment exposure, moving away from fixed income. “PBGC believes this change will help it meet its long-term financial obligations, but it also increases the risk of large investment losses,” the GAO said in its report. “Further, the long-term decline of the DB system continues to erode PBGC’s premium base, with PBGC insuring about 65% fewer plans than it did 15 years ago,” GAO said. The report noted that recent legislation had relieved the pension funding obligations of some plan sponsors. But concerns remain. “…the financial fate of the Detroit automakers, which sponsor very large DB plans, is also uncertain,” the GAO said. “These developments likely increase PBGC’s risk exposure, perhaps significantly” should the companies fail, leaving greatly underfunded plans. Giving the PBGC the legal authority to charge risk-based premiums could improve the agency’s financial standing, Jeffrey Speicher, a PBGC spokesman, said in a statement. The PBGC has authority to charge only a flat-rate premium based on the number of participants in a plan and to assess additional premiums on underfunded plans. “Basing premiums on actual risk of failure is an idea that has long been on the table, and one that may continue to draw interest when future reforms are considered,” Mr. Speicher said in the statement.
|
|
|
|
Latest News
• Reversal? Stanford advisers sue the SEC
March 5, 10:52 AM EST
• Third of companies not complying with new tax reporting rule
March 4, 4:25 PM EST
• Regulators aware of problems at First National for six years: audit
March 4, 3:31 PM EST
• Influential advisory group to look at fair-value, off-balance sheet accounting
March 4, 4:16 PM EST
• In a first, NY State hopes to sell bankrupt insurer
March 4, 3:59 PM EST
CRAIN'S BENEFITS OUTLOOK 2009
SPECIAL REPORT
MOST POPULAR
|
MORE ANALYSIS
Crain Financial Group:
InvestmentNews |
Pensions & Investments |
Workforce Management
Copyright ©2010 Crain Communications Inc
All rights reserved.
Privacy Policy |
Terms & Conditions