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Plunging stock market values have taken a considerable toll on the nation's pension plans, according to recent reports.
This week, the Washington Post cited a study from the Mercer consulting firm which found that the largest company pension plans were now underfunded by a combined $409 billion, compared to the $60 billion surplus they enjoyed as recently as 2007.
"The chaos that has been observed in the world's financial markets over the last 12 months has had a major adverse impact on pension plan funding and will negatively impact corporate earnings," the newspaper quoted from the Mercer report, which also cited a general trend of "alarming deterioration" in recent months.
The newspaper noted that the pension shortfalls would potentially result in lower stock prices for affected companies by undermining their profits and credit ratings, with Mercer estimating that this year's impact alone could result in an eight percent reduction in profits compared to 2007.
A separate report by Reuters noted that pension plans for members of the Standard & Poor's 1500 had a combined $1.21 trillion in assets and $1.62 trillion in liabilities.
Stock prices taking toll on pension funds
Plunging stock market values have taken a considerable toll on the nation's pension plans, according to recent reports. This week, the Washington Post cited a study from the Mercer consulting firm which found that the largest company pension plans were now underfunded by a combined $409 billion, compared to the $60 billion surplus they enjoyed as recently as 2007.
"The chaos that has been observed in the world's financial markets over the last 12 months has had a major adverse impact on pension plan funding and will negatively impact corporate earnings," the newspaper quoted from the Mercer report, which also cited a general trend of "alarming deterioration" in recent months.
The newspaper noted that the pension shortfalls would potentially result in lower stock prices for affected companies by undermining their profits and credit ratings, with Mercer estimating that this year's impact alone could result in an eight percent reduction in profits compared to 2007.
A separate report by Reuters noted that pension plans for members of the Standard & Poor's 1500 had a combined $1.21 trillion in assets and $1.62 trillion in liabilities.
