Corporate Pension Underfunding Hits Record $460 Billion Deficit

Posted By on September 14, 2010

A $108 Billion Deterioration In ONE MONTH

www.zerohedge.com      09-14-2010

According to actuarial and consulting firm Miliman, in August 2010, the funded status of the 100 largest defined benefit pension plans sponsored by U.S. companies dropped by $108 billion to a 10-year low of 70.1%. Yes, that’s a $100 billion + deterioration in one month!  The main reason for the decline in funded status was due to a large decrease in corporate bond interest rates.  It’s the unintended consequences of pushing all markets so far from equilibrium.  We now see the adverse side effects. Soon pension funds like the Illinois TRS and others will compound their mistakes and tens of millions of people who have diligently saved all their lives only to wake up one day and find they have little money left at all.  Expect to hear much more about this side effect of the Fed’s  Keynesian solution as we go forward.

About the author

Comments

Comments are closed.

Copyright © 2020 The Stated Truth