American Pension Fund Fiasco
•
1 like•348 views
The presentation talks about the American Pension Fund Fiasco
![American Pension Fund Background ,[object Object],[object Object],[object Object],[object Object],[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Recommended
More Related Content
What's hot
What's hot (19)
Similar to American Pension Fund Fiasco
Similar to American Pension Fund Fiasco (20)
Recently uploaded
Recently uploaded (20)
American Pension Fund Fiasco
- 1. Presented By: Dilip Alavane 2009 E02 Dhiraj Surana 2009E12 Manish Bharti 2009E14
- 4. The Perils of Retirement
Editor's Notes
- Defined Benefit: defined monthly benefit to retirees Defined Contribution: defined contribution from the employer but not the benefit
- Studebaker terminated its employee pension plan. First casualty , when company faced economic crisis Increased outflow from pension funds due to increased longevity and decreasing fertility .
- $7.7 bn surplus in 2001 to a record $3.6 bn deficit in 2002 and $11.2 bn deficit in 2003 $85 bn deficits was with financially unstable firms
- Demography:pensioners more than the workers & unfavourable workers to retirees $7.7 bn surplus in 2001 to a record $3.6 bn deficit in 2002 and $11.2 bn deficit in 2003 $85 bn deficits was with financially unstable firms. Companies were allowed to count the income of their pension funds as part of their profits , used arbitrarily high rates of return to boost their bottom lines, investing in equities rather than in bonds Fund for the pension was decided upon the discount rate & Companies lacked to fund their pension schemes adequately.