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.
Bankruptcy, corrupt accounting practices, or both, have led to
under-funded pension plans or 401(k) plans loaded with valueless company stock.
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).
Leading credit concerns include a high debt burden compounded by
under-funded pension plans, low financial flexibility and liquidity and below average tax collection rates fueled by an active taxpayer assessment appeal environment.
While Fitch expects debt levels to remain affordable given the town's substantial wealth, the fixed cost burden on the budget is likely to increase when factoring in the escalating contributions to the town's
under-funded pension plans.
According to FTI, of the 319 companies in the S&P 500 that had
under-funded pension plans at the end of 2002, 195 are in fact reporting an over-funded pension plan position, based on GAAP pension accounting rules.
The ratings also consider Aon's higher, albeit declining, financial leverage position, challenges implementing a business restructuring, and potential charges associated with Aon's
under-funded pension plans.
