Classifying pensions as senior debt won't stop bankruptcies if a company can't change with the market, but that's no reason for johnny - come - lately PE firms to ignore unfunded
pension liabilities so they can take the cash & run.
Not exact matches
Moreover, the company keeps spending money it doesn't have on acquisitions, dividends, and buybacks,
so it now sits with almost no excess cash and $ 660 million (68 % of market cap) in combined debt and underfunded
pension liabilities.
It shows that assertions questioning the capacity of the FEDERAL government to pay for programs, usually prefaced with the call for â $ ˜â $ ˜adult conversationsâ $ ™ â $ ™, and couched in terms such as fiscal sustainability, solvency, and unfunded
liabilities, are red - herrings that will lead to needless reductions and privatizations of public programs in health care, elder care,
pensions and
so on.»
Pensions really are in crisis, but the story is
so full of large numbers, obscure projections, and dry terms like «unfunded
liabilities» that not many people are paying attention.
A big drop in returns would be particularly vexing for
pension funds, which are counting on private equity, hedge funds and other
so - called alternative investments to help them meet their mounting
liabilities.
The capitalised value of EU
pensions commitments are currently around 62 billion euros,
so we'd need to work out our share of it to establish our gross future
liability.
The scheme has to be fully funded (i.e. employer contributions must be set to meet 100 % of existing and prospective
pension liabilities including
pension increases) or have a plan to become
so.
Heastie called for closure of the
so - called limited
liability company loophole, «limiting big money in politics,» and
pension forfeiture for lawmakers convicted of felonies.
Under DB plans, individual benefits are not tied to contributions,
so the
pension fund as a whole is supposed to accumulate enough money to pay for the accrued
liabilities.
Some want to do
so because they are hedging exotic instruments that do the opposite, others because they might be hedging long term guarantees for long - dated
liabilities (
pensions, etc.), looking to minimize losses synthetically.
So, even when
pension plans were able to use insurers to reduce / eliminate their
liabilities, there were issues.
They will try to get the PBGC to take on the
pension liabilities in foreclosure, though that may not be
so easy.
If we could turn back the clock 65 or
so years and set up a more conservative method of accounting for
pension liabilities, we would be much better off today.
Severance,
pension, and similar
liabilities are all real costs, and
so should be included (most notably termination payments to management).
Withholding is set for the
pension so that it covers exactly the tax
liability (15 % of $ 30,000 is $ 4,500); but that leaves $ 33,300 (The TSP and 85 % of their SS) from which no taxes were withheld.
So if I blow up for example because of
pension liabilities I can check afterwards wtf was I thinking.
Capital Allocation: OK, I cheated a bit, I should have revealed Record is a cash - rich / zero debt company (with no
pension / contingent
liabilities)-- with free cash flow that consistently matches / exceeds earnings —
so arguably, it's much cheaper than it shows up on the screens.
So it should be in
pension liability transfers.
So why would any finance director consider it appropriate to voluntarily write a cheque to the pension scheme in circumstances where there is no legal liability to do s
So why would any finance director consider it appropriate to voluntarily write a cheque to the
pension scheme in circumstances where there is no legal
liability to do
soso?
In addition, the settlement would not result in a total separation of TSUK from its UK
pension liabilities and
so it remains to be seen whether this approach is enough to convince ThyssenKrupp to push on with the proposed merger.