That said, lump sum payout offers often are attempts by the plan sponsor to reduce
overall pension liability.
Not exact matches
The Institute's rationale for increasing the
overall contribution rate from 20 per cent of pay to 24 per cent is their claim that the use of «fair - value» calculations reveals that the
pension liabilities are much higher than reported, due to the use of a too high discount rate.
Nonetheless, in the case of a number of well - established US corporates, investors remain concerned about the extent of unfunded medical and
pension liabilities and the equity prices of these firms have generally underperformed the
overall market.
«While
Pensions overall continued to have solid returns against a backdrop of challenging macroeconomic factors, the decline in long - term interest rates has likely increased plan
liabilities,» said Scott MacDonald, managing director,
Pensions, RBC Investor & Treasury Services.
Overall debt has now passed # 1 trillion — without counting the
liabilities associated with public sector
pensions or the Private Finance Initiative.
However, your
pension, including Increase for Qualified Child, Living Alone Increase, Island Allowance and Age 80 Allowance, is regarded as income for Income Tax purposes and your
liability for tax will depend on your
overall circumstances.