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Accompanies a great deal say they are blocking their traditional retirement account* and eliminating retiree checkup benefits to persist competitory on pension-less employers overseas and cope with an aging manpower and stock market losses. Just in an shocking new book, Retirement Heist: How Companies foray and earnings by the Nest balls of   supra skytops 2 American proles, Wall St. Diary reporter Ellen Schultz explains that pension cuts are in reality an accounting maneuver ie being accustomed encourage corporate earnings. The massive retirement indebtednesses that a lot of companionships report are actually caused by unfunded executive pensions and deferred compensation plans, not the pension obligations to ordinary employees, she found. U.S. News asked Schultz to explain why traditional pension plans are really being frozen. Excerpts:
Why do profitable companies freeze their pension plans or close them to new workers? The retirement crisis was not an accident. gold supra skytops The retirement crisis was caused by actions of the companies. They had incredibly overfunded plans and chose to cut benefits and ultimately freeze the plans, even though there was plenty of money in them to pay the benefits. Initially people didn’t understand that the benefits were being cut because companies hid it
How is pension plan accounting used to boost shareholder value? Cutting the benefits actually gives companies a boost to profits. It’s an accounting effect. If you promise to pay $100 million to retirees, that’s a debt on the books. If you cancel that debt, then you get to keep the profit. Freezing the plan not only let them keep the money in the plan, but gave them a boost t   red supra skytops profits
Do companies need to cut retirement benefits to stay competitive? When companies began cutting benefits it wasn’t to remain competitive because the plans had a huge surplus and there was no cost to the company. What they were doing are   black supra skytops taking the architectural plan and finding aside to convert a few by the assets into a benefit for the fellowship and in addition to to boost their profits. It’s not accurate as it to say they had to arrange these to continue militant