Most corporate pension plans are underfunded and plan sponsors are wondering whether to fund more than minimum requirements and wondering what to do while cash to make contributions is difficult to come by. Making additional contributions will often make good sense and issuing debt to enable those contributions can improve a company's bottom line. Also many plan sponsors have made or are evaluating making contributions of their own stock to their pension fund. This session will discuss the pros and cons of these two ideas and will review case studies for both GM and JC Penney.
US Society of Actuaries