My first blog (January 2006) dealt with IBM's decision to freeze its pension plan, citing it as "significant." Here is a graph from the General Accounting Office (GAO) depicting the beginnings of tsunami-like wave approaching our shores. The GAO is tracking the underfuning in these PGBC-insured defined benefit plans. Given that such underfunding is based on generous assumptions (meaning that the underfunding is understated), the true size of the underfunding must be several multiples of this $500 billion - a truly frightening issue. Many more companies are going to need to follow IBM's lead.
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