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.

Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (666124)	12/24/2004 12:20:58 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769670

"I thought unfunded pension liabilities were no longer allowed in Private plans?" I didn't mean 'unfunded', I meant plans that are seriously underfunded and that make unrealistic growth estimates (useful for propping up reported earnings). "Even when I retired many years ago, Defined BENEFIT plans were on the way OUT...." Right. Still, some 40% of the S&P have defined benefit plans, and many of them are assuming growth rates far in excess of what most experts believe is appropriate. The federal pension insurance fund is majorly underfunded --- likely to require a slug of some tens of billions of dollars from the taxpayers --- just to keep up with the expected defaults. (FYI --- just one example: the pension obligations of GM EXCEED it's entire market capitalization... giving rise to a reasonable speculation, is the equity actually worth anything? It could be argued that the retirees have a claim against the assets of GM that exceeds it's entire current worth.)