Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Portfolio > ETFs > Broad Market

Towers Perrin: Pension Plan Costs To Rise

Your article was successfully shared with the contacts you provided.

NU Online News Service, Feb. 5, 1:40 p.m. – Towers Perrin, New York, an employee benefits consulting firm, says 2001 stock market losses and increases in liabilities will lead to big increases in costs for sponsors of traditional defined-benefit pension plans.

In recent years, stock market gains have pumped up assets at most defined-benefit plans, eliminating the need for many sponsors to make contributions.

This year, more employers will have to make pension contributions, marking an end to “funding holidays,” Towers Perrin says.

Pension contribution costs could have a dramatic effect on reported earnings at publicly traded corporations, the firm warns.

“In some cases, these pension obligations are comparable in size to the organization’s net worth,” says Eric D’Amours, a Towers Perrin retirement consultant.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.