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The sharp fall in yields on the government long bond--the benchmark for deciding whether company pension funds are properly funded--could cost companies plenty by:
-- Forcing big cash payments into plans that become technically underfunded
-- Increasing the size of lump-sum payments to employees leaving the plans
-- Raising insurance premiums due to the Pension Benefit Guaranty Corp.
-- Triggering extensive corporate disclosure, including advance notice of mergers
Data: American Academy of Actuaries, Milliman USA