23 02, 2015

As retirees live longer, pensions become big problem

2015-02-23T22:31:42-08:00February 23rd, 2015|Categories: Retirement|Tags: , , |

People are living longer – and that’s bad news for some companies’ bottom lines. As pension plans incorporate new life-expectancy estimates into their calculations, investors are glimpsing the financial fallout from aging societies. AT&T Inc. last month absorbed a $7.9 billion noncash charge from rising pension costs, including retirees’ longer lifespans. At Northrop Grumman, updated mortality estimates boosted its pension obligations by $4.5 billion to $30.5 billion, while shareholders in IBM saw their equity shrink by around $6 billion.  [...]

3 02, 2014

Corporate pension plans mark sad milestone

2014-02-04T23:22:26-08:00February 3rd, 2014|Categories: Defined Benefit Plans|Tags: , , , , |

Corporate America’s move away from defined benefit plans hit a dubious milestone: For the first time since Pensions & Investments began listing the largest U.S. retirement plans, not a single corporate name appears in the ranking of the 10 largest defined benefit plans. General Motors Co., Detroit, was the final company to make the top 10. But GM transferred $29 billion to a group annuity in the fourth quarter of 2012. As a result, its DB assets fell to $73.5 billion [...]

Go to Top