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North of London | Since this is a Canadian problem I will point out that there is government oversight on how much a company had to set aside for their employees pension fund.
The amounts are set according to economists (there is a special group and name for the ones who look at numbers for pensions but not coming to me now) and have to be followed both lower and upper amounts.
Many plans were started when income from investments was much higher with interest rates factored in than they have been in recent years and that short fall in interest income has been part of the problem in some funds.
There may be more problems behind the Sears fund as the company was bleeding $$ for a few years.
The other problem behind many funds are Defined benefit plans which really puts a crunch on funding them when inflation kicks in.
Old plans often were Defined Benefit but few are set up that way now with Defined Deposit funds or self directed plans the normal.
Not as good for the retiree as pension income is not as predictable but better for companies funding them since they do not have the surprises in the future. | |
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Sears blames retirees for financial woes -link
