U.S. Insurer Of Pensions Says Its Deficit Has Soared

Article Abstract:

The Pension Benefit Guaranty Corp. has announced that its deficit has increased from $3.6 billion to $11.2 billion in one year. The agency claims it has to reform its investments which have been reduced by two straight years of record failures of corporate pensions and slumping stock markets. The new investment strategy will reduce stock market risks and lean more towards financial assets, such as bonds and stock-like instruments. When stocks fail, some corporations are unable to meet their pension obligations and have to rely on the agency's insurance coverage.

Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, Stock-exchange, Stock exchanges

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U.S. Cancels Pension Plan At Kaiser

Article Abstract:

Kaiser Aluminum's filing for Chap. 11 in Feb. 2003 motivated departing salaried emlpoyees wo withdraw their pension funds in lump sums. The withdrawals devastated the remaining funds and left only $.21 for every dollar the plan owed in benefits. Younger employees may lose some of their benefits in the future since the Pension Benefit Guaranty Corp. insures only part of the benefits.

Aluminum industry, Retirees, Kaiser Aluminum Corp.

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Pension Gap Is Closing, G.M. Reports

Article Abstract:

General Motors has announced that it expects to fully fund employees' pensions by the end of 2003. Through a bond offering earlier in the year, the automobile and tru ck manufacturer raised $17.5 billion, most of which will be added to the pension plans. An additional $4.1 billion from the sale of Hughes Electronics will help complete the pension financing program.

Corporate Bonds, General Motors Corp., GM, Automotive industry

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