Corporate Pensions Face Pressure Despite Stock Rally

Article Abstract:

A recovering stock market and securities industry may have helped restore $100 million to corporate pension funds, but corporations still face a $259 billion gap, compared to last year's $212 billion. Part of the financial problem is attributed to the increase in obligations to employees which is exceeding the rate of the market recovery. Corporations face the challenge of how they will continue to meet their payments to retired employees in addition to their obligations to current employees' funds. Any dramatic shift in investment strategy would have a major impact on the securities and financial services industries.

Management dynamics, Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Security and Commodity Services, Securities & Commodities Services, Securities, Commodity Contracts, and Other Financial Investments and Related Activities, Management, Securities industry, Corporations, Company business management, Corporate finance

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States Pay for Jobs, but It Doesn't Always Pay Off

Article Abstract:

The failure of United Airlines to remain at Indianapolis International Airport after the state provided $320 million for a state-of-the-art aircraft maintenance center represents one of the downsides of state tax subsidies that fail to buy states long-term employment for their economies. Opponents of corporate subsidies believe that governments funds are better spent on education and public transportation. One reason many states will not change their economic policies is because new jobs are now precious commodities, and they are willing to gamble that investments in coporations will pay off.

Government expenditures, Indiana, Airlines, Economic policy, United Air Lines Inc.

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STATES AND CITIES RISK BIGGER LOSSES TO FUND PENSIONS

Article Abstract:

Public employee pension funds are draining state and municipal coffers at an alarming rate, especially in weak economic times. State and local governments are reverting to selling bonds, but the financial risk is considerable to taxpayers because governments are required to pay investors a fixed rate of interest. With diminishing stock market returns, invested pension fund revenues are not providing needed income that was readily available when the US economy was stronger.

Public Finance Activities, Public Administration & Finance, Public Finance-Total Govt, Municipal Government, Public Admin & Finance-Total Govt, Public finance, Government securities, Civil service pensions

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