In an effort to shore up under-funded pension plans
, the Lane Transit District board has voted unanimously to adopt a less expensive plan for administrative employees who are hired after Jan.
Almost every week in the media, there is an article about under-funded pension plans
and looming labour shortages.
Companies with under-funded pension plans
are prevented from promising extra benefits to employees without paying for those promises up front.
8 percent last year, and under-funded pension plans
, which stand at a $216 billion deficit for the S&P 500 companies.
CAL also faces rising cash pension funding obligations for its frozen but substantially under-funded pension plans
5 billion in securities in exchange for taking over the airline's four under-funded pension plans
Congress has also acted to make it harder in the future for employers with under-funded pension plans
to promise additional benefits to their workers without funding those new promises.
For too long, companies have been getting away with destroying the futures of their employees in under-funded pension plans
Bankruptcy, corrupt accounting practices, or both, have led to under-funded pension plans
or 401(k) plans loaded with valueless company stock.
According to the Pension Benefit Guarantee Corporation, companies with under-funded pension plans
represent a total pension shortfall of $278.
PH had $844 million of under-funded pension plans
in FY05 ($553 million in FY04 and $680 million in FY03) and $120 million of under-funded post-retirement medical benefits ($105 million in FY04 and $102 million in FY03).
Moreover, DiMicco points out that the legislation would weaken already under-funded pension plans
and increase the risk that these plans would be terminated, causing a few large corporations to benefit, while the taxpayers and American workers ultimately suffer.