Table: A Costly Farewell to the 30-Year Treasury
The sharp fall in yields on the government long bond--the benchmark for deciding whether company pension funds are properly funded--could cost companies plenty by:
-- Forcing big cash payments into plans that become technically underfunded
-- Increasing the size of lump-sum payments to employees leaving the plans
-- Raising insurance premiums due to the Pension Benefit Guaranty Corp.
-- Triggering extensive corporate disclosure, including advance notice of mergers
Data: American Academy of Actuaries, Milliman USA