By Jilian Mincer – Corporate America is finally ready to deal with a monkey on its back: massive pension obligations.
AT&T Inc on Friday (Oct 19) said it plans to contribute a $9.5 billion stake in its wireless business to its underfunded pension plan. Earlier this week, Verizon Communications Inc moved to unload $7.5 billion in pension obligations to insurer Prudential Financial Inc.
But by far the most common trend in corporate America is to offer lump-sum payouts to thousands of retirees now – these voluntary buyouts could cost companies millions of dollars upfront, but they eliminate the risk of obligations soaring out of control in the future. more> http://tinyurl.com/9dy7gbs
- Big Money, Big Risks: Should You Take a Lump-Sum Pension Buyout Offer? (dailyfinance.com)
- Verizon strikes pension deal with Prudential (utsandiego.com)
- Verizon strikes pension deal with Prudential (sfgate.com)
- Verizon strikes pension deal with Prudential (seattletimes.com)
- Auto-enrol pensions – do the figures add up for you? (itv.com)
- Five Things You Didn’t Know About Ford’s Pension Buyout (retirementmoney.wordpress.com)
- Armed Forces to wait longer for a pension (telegraph.co.uk)
- Protecting your Lump Sum (irishfinancialadviser.wordpress.com)
- Media Decoder Blog: Times Co. Offers Former Employees Lump Sum Option for Pension (mediadecoder.blogs.nytimes.com)