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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Alias Shrugged who wrote (69072)	10/14/1999 9:53:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Mike, Here's my question in non-accounting terms. I assume that in a normal environment for stocks and bonds, (as far as returns go) that GE funds its pensions annually as well as getting a return on the existing assets. If some of the excess returns are being included in operating income, just looking at that amount may be understating how much it is actually contributing or distorting the operating performance. Under normal conditions there would be a contribution to the pension. Is this correct? ex. Let's say my own pension requires a 2000 contribution per year to meet my retirement needs. If the bull market generates 6000 in "extra" profits, (and for discussions sake I could include it in my earnings) I include 4000 in my earnings. But it actually benefitted me by 6000 because I didn't have to make the normal contribution. Wayne