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To: research1234 who wrote (38361)	2/2/2013 9:32:36 PM
From: i-node	8 Recommendations Respond to of 85487

Perhaps you would do better, then, to make your case. If you spent your career calculating pension liabilities, you should be aware that unfunded liabilities, by the nature of their calculation, DO take into account the asset base, and you should also be aware of just how unimportant the existing assets in SS & Medicare are. If one refers to the original APB on the subject (the authoritative predecessor to current FASBs), it is clear that the existing asset base of the plan does enter into the computation. By definition, the unfunded liability is, well, unfunded. If there are existing assets in the plan, the liability isn't unfunded. Put another way, assume a plan contains 5 billion in assets which exceeds the sum of the current and past service costs. How much is the unfunded liability? One can readily see there is no unfunded liability in a situation such as this without knowing anything further.