RE: Re: RE: pensions and the stock market

["Max Sawicky" <sawicky@xxxxxxxxxxxxxxxx>]

Max, I think that you are corect.  My question had to do with the real
consequences of a stock market flop.  The pension linkeage implies that
either profits take a hit or that firms cut back on pensions.  I think
that we know which is more likely.



I would say the empirical question is how many
pensions are over-funded or on the knife's edge.
In the latter case, sure benefits would be under
pressure.  But some pensions are over-funded --
the phenomenon called "Pension stuffing." I looked
around for information on this some months ago and
found little. The best thing was an article in the
WSJ.  Apparently there are tax benefits to locating
profits from financial assets within a pension fund,
though I'm not familiar with the details.

mbs