Financial News (December 24)
2012/ 12/ 26 by jd in Global News
In 2013, some U.S. companies will benefit from changes to interest-rate pension liability assumptions, with the newly approved use of a 25-year rate average. This “will generally produce a higher rate, which will lead to a lower overall liability.” Some companies will now be legally able to reduce pension funding. “The catch is that this is a game of smoke and mirrors. The actual pension obligation hasn’t changed. And by putting less into their plans today, companies may end up facing a bigger bill in the future.”
Tags: Assumptions, Corporate pensions, Liabilities, Obligations, U.S.
