Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5135)	7/18/2003 2:33:41 PM
From: tonka552000	Read Replies (3) \| Respond to of 5423

unbelievable

To: RealMuLan who wrote (5135)	7/18/2003 4:23:19 PM
From: Jim Willie CB	Respond to of 5423

expect civil disorder over pensions and jobs in 2004-05 / jw

To: RealMuLan who wrote (5135)	7/23/2003 3:28:52 PM
From: re3	Read Replies (1) \| Respond to of 5423

from the toronto star on pensions...Jul. 23, 2003. 01:00 AM Rising stock prices would lift pension plans: DBRS ROSS MAROWITS CANADIAN PRESS MONTREAL—A resurgence in the stock market should replenish most underfunded pension plans, suggests a new study released yesterday by the Dominion Bond Rating Service. More than one-half of 263 North American companies studied could eliminate their pension shortfalls with a 30 per cent rise in the stock market, said the report presented to the Accounting Standards Oversight Council. The council helps to set accounting standards in Canada. "The whole issue of pensions has been hyped up," said Walter Schroeder, president of the bond rating service. The gloomy situation has been exaggerated by the horrible stock market investment performance last year. "I think it's an aberration that will neutralize as the market comes back," Schroeder told reporters. "A rise in the Dow to about 11,500 will eliminate the problem for half of the pension plans that we studied." With most companies having two-thirds of their investment portfolios in stock, a 30 per cent rise in the stock market would increase the value of the portfolio by 20 per cent. That would cover the pension underfunding without additional corporate contributions for 51 per cent of plans that are 80 per cent or better funded, he said. Some underfunded pension plans include: BCE Inc., Bombardier Inc., Canadian National Railway, Canadian Pacific Railway, Stelco Inc., Imperial Oil Ltd., George Weston Ltd. and Hydro One Inc. Pension plans of labour-intensive companies, particularly those in the automotive industry, have been particularly hit hard. The mining and forestry sectors have also been affected by a decade of unprofitability, Schroeder said. As long as companies are solvent, however, they shouldn't be affected by pension problems. "On the whole, I don't think workers have to worry about deficiencies because the market and any rise in interest rates will put them (pension funds) back on side," Schroeder said.