Top firms' pensions in the red
Top firms' pensions in the red
Top firms' pensions in the red
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Ariz. companies' plans among underfunded
Russ Wiles
The Arizona Republic
Aug. 17, 2004 12:00 AM
The pension plans of America's largest corporations - and some of Arizona's top employers - were underfunded in 2003 by $165 billion, according to a new report.
But the 362 big companies examined in the study by Standard & Poor's Corp. managed to trim their combined shortfall from $219 billion the prior year.
Last year's improving stock market helped push pensions back in the right direction, yet the plans "remain deeply in the red," the report said. "When pension funding falls far enough to mandate contributions, corporations must trim other spending."
Companies are not required to immediately cover a shortfall, but they may be required to develop a plan to begin making up the deficit.
Keith Wibel, a chartered financial analyst at Foothills Asset Management in Tempe, said the report indicates pension underfunding will remain a problem for years to come.
Top firms' pensions in the red
advertisement
Ariz. companies' plans among underfunded
Russ Wiles
The Arizona Republic
Aug. 17, 2004 12:00 AM
The pension plans of America's largest corporations - and some of Arizona's top employers - were underfunded in 2003 by $165 billion, according to a new report.
But the 362 big companies examined in the study by Standard & Poor's Corp. managed to trim their combined shortfall from $219 billion the prior year.
Last year's improving stock market helped push pensions back in the right direction, yet the plans "remain deeply in the red," the report said. "When pension funding falls far enough to mandate contributions, corporations must trim other spending."
Companies are not required to immediately cover a shortfall, but they may be required to develop a plan to begin making up the deficit.
Keith Wibel, a chartered financial analyst at Foothills Asset Management in Tempe, said the report indicates pension underfunding will remain a problem for years to come.
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