Not exact matches
The belief is that because rates are being kept artificially low, then the
pension deficits are
also artificially and temporarily large.
The
Pension Fund for Vatican staff was
also virtually bankrupt, with a
deficit of $ 700 - 800 million.
While it's true that the Town's bond rating was lowered from A + to A -, the report
also stated that, «We understand that the
deficit in 2012 was due to a steep increase in
pension contributions and an unanticipated charge from Ulster County for Safety Net (welfare) expenditures without an offsetting property tax levy increase.»
They
also admit that money cut from
pensions will go to the Treasury to help pay off the
deficit, not into
pension schemes, which the union says amounts to a tax on working in the public sector.
He
also suggested that cuts to the
deficit could be found elsewhere on tax savings for
pension contributions.
«
Pension scheme
deficits also play a part: people currently at work not only have their salaries affected, but are
also extremely unlikely to enjoy the same retirement benefits as their colleagues who retired in the past, even when accounting for an increasing life - expectancy.
I
also include 50 % of convertible / preference capital,
pension deficits etc., which seems an appropriate balance — it recognizes these (long term) liabilities aren't bank loans, but they still increase gearing & prior claims on capital.
With zero interest expense, one might
also expect a debt adjustment — unfortunately, INM still has an $ 86 million
pension deficit on the balance sheet, and if we consider it a debt - proxy, it effectively absorbs what would otherwise be available debt capacity:
Years ago, acquirers would blithely assume significant
Pension Liabilities, but those days are long gone... We need to chop this GBP 105.7 mio
Deficit (net of Deferred Tax) off the price
also.
BCE, Canadian Pacific Railway, Imperial Oil and George Weston may
also face higher than average contribution requirements, given the size of their
pension deficits relative to their market capitalization.»
I
also considered incorporating Total's (clearly undervalued) Investment Property, but ultimately I'm happy to consider this an offset to TOT's
Pension Deficit.
To this (negative) debt adjustment we should
also add the remaining net
pension deficit of 61 M. However, we do have an offset — INM's 18.6 % stake in APN News & Media (APN: AU)-- a ridiculous trophy asset that should have been sold years ago, but at least its value has recovered somewhat in the past year (to AUD 128 M).
Unfortunately, there's a whopping great EUR 0.7 bio
pension deficit to factor in
also.
The public interest in the story was fuelled in no small part by its iconic status, but
also the $ 270 - million
pension deficit that is unlikely to be fully serviced in light of other outstanding debts.