Exact(3)
Nyden, who died in January, revealed through his reporting how the coal industry had built a maze of shell companies to escape liabilities for pensions, health benefits and environmental cleanup.
Ford looks, in other words, as though it is now trying to emulate the cuts under way at General Motors (GM .For months attention has focused on the travails of GM, as it grappled with losses, overcapacity, job cuts and huge liabilities for pensions and health care.
The nation's fiscal condition is border-line precarious (a high ratio of national debt to GDP and huge unfunded liabilities for pensions and health care), so massive new entitlements are unaffordable without large tax increases, increases that would probably end the pathetically modest economic growth we still have.
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He added that by reducing the amount of basic pay, any employers involved in such a scheme would also be reducing the potential liabilities for pension payments under auto-enrolment, which are based on basic pay and would not include tips.
In January, the PBGC reported an $11.4-billion loss for the fiscal year ended Sept. 30 -- the biggest in the agency's history -- after it assumed liability for pensions at steel and airline companies that filed for bankruptcy protection.
The nonprofit State Budget Solutions combined states' major debt and future liabilities, primarily for pensions and employee healthcare, unemployment insurance loans, outstanding bonds and projected fiscal 2011 budget gaps.
"Liability for pension provision is going to fall unavoidably on the shoulders of virtually every man and woman on the planet," said Bill Blevins, managing director of Blevins Franks International, a large London firm of financial advisers.
The Qatari fund cited the cost associated with raising additional equity in the current market to cover liabilities for workers' pensions and was criticised for underestimating the scale of its commitment.
That's because the Fed is driving down interest rates, and as the rates on corporate bond yields fall, the liabilities for corporate pensions rise.
Wisconsin and Ohio were each cited in a 2010 study by the Pew Center for the States as "a national leader in managing... long-term liabilities for both pensions and retiree health care".
General Motors spends as much on health care as it does on steel, and both GM and Ford have enormous liabilities for their pension programs that make profitability very difficult.
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