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

To: E_K_S who wrote (59923)	10/12/2017 5:08:13 PM
From: bruwin	Respond to of 78821

That's one of the main problems with the "DEFINED BENEFIT" scheme as opposed to a "DEFINED CONTRIBUTION" scheme. With Defined Benefit a company is obligated to keep its "Pension Payout Pot" of an adequate size as is "dictated" by Actuaries who have informed the company what it must have in order to meet its future Pension obligations. Needless to say, the problem becomes compounded when it has an increasing labour force which often, ultimately, leads to an increasing aged and soon to retire labour force. In my part of the world virtually every company has reverted to a Defined Contribution scheme.

To: E_K_S who wrote (59923)	10/13/2017 10:47:15 AM
From: Micah Lance	Respond to of 78821

The negative sentiment around GE sure seems to be interesting... Wall street is predicting the first earnings miss in ~2 years and a dividend cut. If these two predictions come to pass, GE might hit the teens. I haven't dug through their pension liability yet, however I don't know how much of an issue it will be. The larger issue right now is growing the business in the face of declining earnings expectations. If rates continue to rise and the new CEO can turn the business around, the liabilities won't be a problem most likely as they have a decade to deal with these issues. Earnings come out next Friday Oct 20 I believe, will be an interesting item to watch.