The Bloomberg News September 14, 2010, article discusses how corporate pension plans in the U.S. are falling behind future payouts to retirees by the most in a decade amid a slowing economy and the lowest bond yields on record.
In the article, Kenneth Hackel, president of credittrends.com and research and consulting firm CT Capital likens the shortfall to a ‘silent heart attack’. He believes “People aren’t recognizing the symptoms until the patient falls on the ground.”
The article quotes a recent Milliman report that contributions to the 100 biggest corporate pension plans increased to $54.5 billion in 2009 from $29.5 billion the previous year and compares with an average of $38.7 billion for the prior five years.
“It’s a major, major hit for companies to take,” said Hackel of Alpine, New Jersey-based CT Capital. “Sponsors are going to need to step up their contributions massively.”
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