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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Alias Shrugged who wrote (6485)	9/18/1998 11:37:00 AM
From: Ramsey Su	Read Replies (2) \| Respond to of 9980

Mike, In the San Diego Union this morning, there was an article that CalPERS, the largest US pension fund lost $11.5 billion since July 17 when the fund reached $142.5 billion. I guess the key here is "defined plans". Is this common practice for most corporations? If we head into a period of pro-longed recession, is it correct to assume that most of these plans will end up being under funded and the companies would have to fork out the shortage, at the time when they can least afford to do so? Furthermore, if early retirement is used, as in previous down cycles, for downsizing, wouldn't that put further strain in the system? Something to think about. Ramsey