“Alarming Deterioration” of Pension Funds Will Impact the Bottom-Line

From Mercer:

Pension plan deficit hits record $409 billion for S&P 1500 companies; pension expense may rise to $70 billion in 2009, a significant drain on corporate earnings:
  • 2008 year-end funded status for S&P 1500 drops to 75 percent compared to 104 percent at the end of 2007
  • Pension expense likely to increase from $10 billion in 2008 to $70 billion in 2009, Mercer says
  • Weakened corporate balance sheets could reduce capital spending, affect loan covenants and credit ratings

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