Politics, Weather, Photography, and the Dog
Tuesday 3 March 2009

Crain's Chicago Business reports today that the pension liabilities of several prominent employers have exploded just as their assets have imploded:

Boeing Co.'s shareholder equity is now $1.2 billion in the hole thanks to an $8.4-billion gap between its pension assets and the projected cost of its obligations for 2008. At the end of 2007, Boeing had a $4.7-billion pension surplus. If its investments don't turn around, the Chicago-based aerospace giant will have to quadruple annual contributions to its plan to about $2 billion by 2011.

... At Peoria-based Caterpillar, shareholder equity dropped more than 25% from the previous year after the company booked a $5.8-billion pension shortfall and its plan went from 93% funded to 61% funded.

That means Cat has to pay an additional 1.5 percentage points of interest to keep its untapped credit lines intact, according to SEC filings. Its pension assets sank 30% last year, and this year's contribution will more than double to about $1 billion. A Cat spokesman declines to comment.

In many cases these pension deficits will hurt exactly the people who need them most.

Tuesday 3 March 2009 07:11:33 CST (UTC-06:00)  |  | Chicago | Politics | US#
Search
On this page....
Pension bombs
Countdowns
The Daily Parker +3482d 22h 16m
Italy 0d 23h 42m
IDTWHQ move 17d 23h 57m
Parker's 9th birthday 18d 14h 57m
My next birthday 99d 19h 02m
Categories
Aviation (366) Baseball (110) Best Bars (10) Biking (46) Chicago (1000) Cubs (199) Duke (134) Geography (369) Higher Ground (5) Jokes (284) Kitchen Sink (711) London (71) Parker (204) Daily (204) Photography (157) Politics (307) US (1148) World (286) Raleigh (21) Readings (8) Religion (68) San Francisco (94) Software (217) Blogs (83) Business (251) Cloud (91) Cool links (152) Security (105) Travel (260) Weather (755) Astronomy (94) Windows Azure (64) Work (101) Writing (15)
Links
Archive
<May 2015>
SunMonTueWedThuFriSat
262728293012
3456789
10111213141516
17181920212223
24252627282930
31123456
Full archive
Blogroll
About
David Braverman and Parker
David Braverman is the Chief Technology Officer of Holden International in Chicago, and the creator of Weather Now. Parker is the most adorable dog on the planet, 80% of the time.
Legal
All content Copyright ©2015 David Braverman.
Creative Commons License
The Daily Parker by David Braverman is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License, excluding photographs, which may not be republished unless otherwise noted.
Admin Login
Sign In
Blog Stats
Total Posts: 4819
This Year: 205
This Month: 40
This Week: 6
Comments: 0