FASB Move On Cash-Balance Pensions Spurs Opposition
Friday March 12, 5:25 pm ET
By Arden Dale, Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Companies could see an impact on their balance sheets from a recent decision that stands to expand the benefits they owe in controversial cash-balance pension plans
If new FASB rules implemented then:
Stephen D. Mirante, managing consultant in the Teaneck, N.J., office of Watson Wyatt Worldwide, a benefits consulting firm, estimated that plan liabilities could grow by around 20% to 30%.
See full article at URL below.
If implemented would this mean IBM Corp. having to find substantial extra funds to put into pension pots?
The proposed new methodology appears to overcome the "unrealistic" growth rates some large corps have been using to project the future values of their pension funds!
What this means to us in the UK....who knows? probably a larger transfer from the "C" plan to the "M" plan?