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Unformatted text preview: ight in front of your eyes.
But it gets worse. For Bethlehem' s current retirees, and for those workers who soldiered on in the employ of
Internatio nal Steel Gro up (which ultimately bought Bethlehem), the secure retirement they had worked their whole lives
to obtain was about to become less secure. Because when a pension fund is underfunded, the P BGC doesn' t necessarily
make up the whole difference. In Bethlehem' s case, the P BGC determined that the pension fund lacked $4.3 billion to be
made sound. T he P BGC anted up $3.7 billion. But that' s the good news. T he bad news was that Bethlehem' s employees
and retirees had also bargained -- and worked -- for the promise of health-care coverage in retirement. T he P BGC
calculated the value of that promise at $3.1 billion -- but the P BGC didn' t cover a dime of it.
"It co uld happen to yo u"
Heed the prophetic words of Ed McMahon. A recent study conducted by Camelback Research listed the top 20 U.S.
companies whose pension obligations are massively underfunded in comparison with the companies' size. At the top of
the list -- as will surprise no one who reads a newspaper from time to time -- are the nation' s airlines. Delta (NYSE:
DAL ) , No rthwest (Nasdaq: NWAC ) , American (NYSE: AMR ) , and Co ntinental (NYSE: CAL ) claim the top four
spots on the list, with unfunded pension liabiliti...
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This note was uploaded on 04/04/2014 for the course RMI 2101 taught by Professor Gary during the Fall '10 term at Temple.
- Fall '10