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Tracking the progress of Canada’s pension and benefits bills

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W Sharkey:

DB Penion Funds are deferred income. In the 1980s and 1990s many companies enjoyed Pension Payment Holidays and the benefits accrued to share holders. Now many pension funds are underfunded. If the Company is ongoing, shareholders and bond holders will eventually fund the Plan. If a company is seeking creditor protection then the unfunded liability of the pension fund should recieve a special priority or at least the priority of a secured creditor. Bond holders can maesure their risk and invest elsewhere or seek a higher return on these companies bonds. Retirees have no flexibility.

Monday, January 17 at 6:36 pm | Reply

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