Beresford, Dennis R.; Neary, Robert D.
May 1985
FE: The Magazine for Financial Executives;May1985, Vol. 1 Issue 5, p5
Trade Publication
The article presents an assessment of some alternatives, that can be considered in the event of overfunded pension plans of a company. Various funding strategies are possible, depending on an individual company's particular needs and business judgment. For example, many companies now follow a policy of funding only whatever minimum amount is required under ERISA, which might be zero in a given year. Other companies consider additional criteria, such as long-range funding targets established with the help of their actuaries. Still other companies, viewing the plan as a way to indefinitely defer taxable income, fund the maximum justifiable amount in light of alternative investments.


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