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.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Spekulatius who wrote (50772)2/4/2013 9:09:43 AM
From: E_K_S  Read Replies (2) of 78425
 
One other thing on these pensions is that most of these companies have switched to an all "401K" employee program going back to the 1990's . As a result, those employees receiving company paid pensions are getting older and will be dying thus could be considered a "dying" liability. Perhaps the market is taking this fact into consideration when pricing this outstanding liability especially in the out years.

For example, at LMT I think by 1990 all new employees were treated under the 401K program. The biggest cost increase for the company was the medical coverage for retirees. I am not sure how this is covered w/ new employees but I do not think these companies pay this benefit like in the past.

Therefore, would not these liabilities actually fall in values at recipients die and/or move into the 401K programs? So, perhaps the future liabilities are a bit over stated and/or their growth will be much less.

EKS
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