Low Interest Rates Force Companies to Pour Cash Into Pensions – WSJ.com

Low Interest Rates Force Companies to Pour Cash Into Pensions – WSJ.com.

Overall, pension plan funding fell by $79 billion last year at about 400 large companies with defined benefit plans, according to preliminary estimates by Towers Watson. The total estimated deficit at those firms now stands at $418 billion, 23% more than in 2011, and the highest since the firm began tracking.

Companies, which by law must keep defined benefit pension plans funded within a certain period of time, are taking a variety of paths to address the issue. They are buying out pensioners, unloading pension accounts to third parties and upping their contributions.

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