Free Republic

Pension Plans Face Underfunding Next Year NEW YORK (Reuters) - Only one in five corporate pension plans will have enough funds to fully cover liabilities next year if weak economic conditions persist, according to an analysis released by a consulting firm this week. ADVERTISEMENT The firm, Watson Wyatt & Co. (NYSE:WW - News), also said Monday if the weak stock market continues, the percentage of companies that will need to contribute to their pension plans next year could more than double to 65 percent. U.S. companies will have to pump billions of dollars into pension plans weakened by the current...

<p>The California Public Employees' Retirement System (CalPERS) earns its reputation as the world's corporate governance bulldog. With the annual meeting season in full swing, the nation's largest pension fund has been using its market clout to press for change at such poor performers as Lucent Technologies, Qwest Communications International, and Gateway. CalPERS' brand of activism has such a powerful impact on stock prices that finance professors have dubbed it "the CalPERS effect."</p>

The federal judge overseeing Enron's bankruptcy proceeding granted a Labor Department request to take control of the company's employee pension plans away from Enron officials. U.S. Bankruptcy Judge Arthur Gonzalez ordered Friday that control of the plans be turned over to the State Street Corp. investment firm, Labor Department officials announced. The move came after the Labor Department, which is investigating how Enron officials handled the plans, suggested that the officials deceived the government by reaching an agreement they didn't intend to keep to transfer control to State Street. Many employees lost nearly all their retirement assets as Enron stock...