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Strategies & Market Trends : BAK - Investing -- Ignore unavailable to you. Want to Upgrade?

To: batman10023 who wrote (418)	3/2/2012 7:03:41 PM
From: Spin.	1 Recommendation Respond to of 3249

One of the things I was researching but couldn't find a definitive answer on was the pension fund. If you have a specific source you could point me to that answers the following I'd appreciated it. Eddies is getting nailed on the PBO as the 30year keeps falling lowing the discount rate allowed. This keeps pushing up his cash contributions required to neutralize the liability over 5 years. If the 30year then rises, say in 3 years time, the fund will likely move to an over funded state and the rules I looked at make it extremely hard to reclaim this over-funding balance. What I was wondering though is how much of debt SHLD can issue to the pension fund to suck the cash out that way. Eddie issued a small is amout of SHLD debt to the pension fund previously but I'm trying to understand if there is a limit on the % of plan assets Eddie could issue a note for. There is huge optionality in the pension plan if a) 30yr rises and b) Eddie can clawback cash via a note. Any ideas? Perhaps one of your guru contacts may know this pension arcania? Spin