Beresford, Dennis R.; Neary, Robert D.
June 1985
FE: The Magazine for Financial Executives;Jun1985, Vol. 1 Issue 6, p9
Trade Publication
The article focuses on some alternate options that can be implemented in the event of overfunded pension funds in a company. An obvious one is to use up the surplus by adding liabilities to the existing plan, such as amending the plan's benefit formula to increase benefits. Increasing benefits may be an attractive idea, if the company's benefit program has not kept up with the competition in past years. Another way to add obligations to the plan would be to have it pay its own administrative costs, including fees for legal, actuarial, accounting, and trustee services, and annual PBGC insurance premiums.


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