April 14, 2005
U.S. companies reduce pension payments
Leading American companies are planning to scale back pension contributions due to the uncertainty over U.S. pension reform, Financial Times reports.
A number of companies have begun to privately admit postponing voluntary payments, the actuarial firm Milliman reports, saying they fear they would lose flexibility over contributions made in the future.
Congress is currently considering rule changes in U.S. pension systems to make companies more responsible for their pension promises to employees. Accounting standards are also expected to change to give investors more visibility of pension liabilities.
Posted by Tom Troceen