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To: chic_hearne who wrote (72716)2/27/2001 9:20:34 PM
From: IceShark  Respond to of 436258
 
Yes, if the plan assumptions hold out, more or less. Things like return on plan investments and mortality are a couple of big ones which may change. The wrong way. -g-

This is actually a huge potential additional expense for companies that have defined benefit plans. Most are turning those types of plans off as fast as they can, though.



To: chic_hearne who wrote (72716)2/27/2001 9:25:11 PM
From: KyrosL  Respond to of 436258
 
Yes, it takes into account employee age distribution. Don't forget that IBM cut substantially its employee population in the nineties. So a lot of the boomers are already out.



To: chic_hearne who wrote (72716)2/27/2001 9:27:43 PM
From: Ilaine  Respond to of 436258
 
Under ERISA, the internal revenue code requires companies offering defined benefit plans (aka pensions) to do actuarial projections in order for the employer's contributions to be tax-deductible, and there is also a fiduciary requirement of regular review to ensure that the projections remain current.