SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ild who wrote (155578)3/13/2002 7:38:19 AM
From: Alias Shrugged  Read Replies (1) of 436258
 
Pension income is driven by expected earnings on assets, not the actual earnings. Any gains or losses arising from the difference between expected and actual return on assets is gradually factored into the pension expense calculation for the following fiscal years.

From 1995 through 1999, when pension plan assets were booming, the pension expense figures were based on the assumed rate of return (9.5% or 10% or whatever) and not the actual oversized asset returns. The difference between the expected and actual returns was "banked" for a rainy day.

It's been raining like hell in 2000 and 2001 -gggg-

I have only glanced at IBM's 2001 Annual Report, but it looks like the surplus returns building up in the plan are now dissipated.

Mike
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News