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To: ild who wrote (173812)	6/19/2002 12:42:29 PM
From: Alias Shrugged	Respond to of 436258

>>Mike, with Louis Gerstner gone it would be prudent to do housecleaning that could be still blamed on him. If they wait too much it is going to be blamed on the new guy. Also, IMO it depends on what other companies do. IBM can't be left alone with 10% assumption rate if all other companies have 8%. Is there current tendency to adjust assumption rate? I know that Warren Buffet has something around 6%. Did you consider what IBM's liability going to be if they adjust assumption rate?>> It will be interesting to see if they can structure a "one-time" big bath on the pension plan, but I'm not sure how that works. On the interest rate assumption, I have some contacts in the actuarial world and I will see if companies have been lowering their asset return assumption. Knighty Tin - what return rate would you assume if you were 60% equities and 40% fixed income and had the regular pension fund dolts running the assets??? If IBM changes their asset assumption, it has no impact on the liability side.