Pension Funds Risky Business
For the first time in years, lots of companies have to actually do something about their pension funds, most of which got fat and happy during the great bull-market ’80s and ’90s. Pension funds have lost money for three straight years because stock prices have fallen so sharply. Now the bill is coming due. Trevor Harris, chief accounting analyst at Morgan Stanley, estimates that the 360 of the Standard & Poor’s 500 companies that still have “defined benefit” pension plans will have aggregate pension deficits of $240 billion at the end of this year....