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To: energyplay who wrote (31304)	4/11/2003 2:17:53 AM
From: TobagoJack	Respond to of 74559

energyplay, By golly, I think THEY have found the SOLUTION to pension shortfall [EDIT: I do not believe they will take into account the default deluge implicit in the corporate bond rate although they will use the rate as discount rate;0)] nytimes.com April 11, 2003 A Plan to Recalculate Pensions By MARY WILLIAMS WALSH Corporations would find billions of dollars of pension shortfalls eliminated overnight under a proposal being prepared to ... being drafted by a Democrat and a Republican ... embraced by the nation's biggest corporations, would use a rate that is tied to high-rated corporate bonds and that is higher than both the interim measure and the rate that companies have traditionally used to measure their pension obligations. The higher rate, known as the discount rate, makes obligations to retirees look smaller, at least on paper. .... THEY cannot use this machination to solve Japan's life insurance problem, because that problem requires genuine earnings or capital gain, as would [EDIT: but be quiet about it] the US pension funding shortfall. Chugs, Jay