Companies Tap Pension Plans to Fund Executive Benefits

[UAL_TECH]

Companies Tap Pension Plans to Fund Executive Benefits

Excerpt:

Little-Known Move Uses Tax Break Meant for Rank and File

At a time when scores of companies are freezing pensions for their workers, some are quietly converting their pension plans into resources to finance their executives' retirement benefits and pay.

In recent years, companies from Intel Corp. to CenturyTel Inc. collectively have moved hundreds of millions of dollars of obligations for executive benefits into rank-and-file pension plans. This lets companies capture tax breaks intended for pensions of regular workers and use them to pay for executives' supplemental benefits and compensation.

The practice has drawn scant notice. A close examination by The Wall Street Journal shows how it works and reveals that the maneuver, besides being a dubious use of tax law, risks harming regular workers. It can drain assets from pension plans and make them more likely to fail. Now, with the current bear market in stocks weakening many pension plans, this practice could put more in jeopardy.

How many is impossible to tell. Neither the Internal Revenue Service nor other agencies track this maneuver. Employers generally reveal little about it.
Some benefits consultants have warned them not to, in order to forestall a backlash by regulators and lower-level workers.

Hey, it is just biznuss... :down:

B) xUT

 

[southwind]

Yep................just think ! If we had the "Fair Tax" instituted right now, this would be a non-issue !

 

[NewHampshire Black Bears]

Companies Tap Pension Plans to Fund Executive Benefits

Excerpt:


Hey, it is just biznuss... :down:

B) xUT

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"TECH",

Your correct,........................., "just buznuss", ...until 1/20/09 !!!!!!!!!

 

[southwind]

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"TECH",

Your correct,........................., "just buznuss", ...until 1/20/09 !!!!!!!!!

Yep...........then the Dems will have their hands in everybodys pocket.....including yours !

How many more babysitters do you require besides the "UNION" and the "GOVERNMENT" ?

 

[NewHampshire Black Bears]

Yep...........then the Dems will have their hands in everybodys pocket.....including yours !

How many more babysitters do you require besides the "UNION" and the "GOVERNMENT" ?

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Lets see(Southwind)..the Most(Federal) taxes I paid(each year), since I retired, was around $100, WHICH I offset by a crummy $10 a month, in SS taxes withheld.

In NH,..we DON'T Pay State TAX,......So to your point, I'm NOT worried about the Democrats.


Southwind,.....How MUCH are they gonna' get from YOU..............brother ?


As of 1/20/09,...............it looks like the ..RICH and FAMOUS,............won't be So RICH,......but Still FAMOUS ! :rant: :rant: :rant: