10 Companies Getting CRUSHED By Rising Pension Costs

pension fund withholding

Photo: Flickr Vertigogen

Falling interest rates and volatile stock markets are putting pressure on pension fund returns.UBS’s Janet Pegg warns that lower expected returns will eventually lead to higher pension expenses as companies try to improve the deteriorating funded status of their plans.

Pegg’s report identifies the 25 most underfunded pension plans, based on a percentage of market cap.  We’ve pulled the 10 worst.

 

Note: These figures are based fiscal years ending between December 2010 and March 2011.

#10: Raytheon Co. (NYSE: RTN)

Under Funding as a % of Market Cap: -28.28%

2010 Projected Benefit Obligation: $19.138 billion

Total Amount Under Funded: $4.039 billion

Source: UBS

#9: Sears Holdings Corp. (NASDAQ: SHLD)

Under Funding as a % of Market Cap: -29.13%

2010 Projected Benefit Obligation: $7.024 billion

Total Amount Under Funded: $1.682 billion

Source: UBS

#8: Ford Motor Co. (NYSE: F)

Under Funding as a % of Market Cap: -29.91%

2010 Projected Benefit Obligation: $70.032 billion

Total Amount Under Funded: $11.457 billion

Source: UBS

#7: Whirlpool Corp. (NYSE: WHR)

Under Funding as a % of Market Cap: -38.59%

2010 Projected Benefit Obligation: $3.994 billion

Total Amount Under Funded: $1.534 billion

Source: UBS

#6: SUPERVALU Inc. (NYSE: SVU)

Under Funding as a % of Market Cap: -42.07%

2010 Projected Benefit Obligation: $2.515 billion

Total Amount Under Funded: $619 million

Source: UBS

#5: Lockheed Martin Corp. (NYSE: LMT)

Under Funding as a % of Market Cap: -42.42%

2010 Projected Benefit Obligation: $35.773 billion

Total Amount Under Funded: $10.428 billion

Source: UBS

#4: United States Steel Corp. (NYSE: X)

Under Funding as a % of Market Cap: -58.92%

2010 Projected Benefit Obligation: $10.630 billion

Total Amount Under Funded: $1.975 billion

Source: UBS

#3: Owens-Illinois Inc. (NYSE: OI)

Under Funding as a % of Market Cap: -102.32%

2010 Projected Benefit Obligation: $4.004 billion

Total Amount Under Funded: $2.725 billion

Source: UBS

#2: Goodyear Tire & Rubber Co. (NYSE: GT)

Under Funding as a % of Market Cap: -102.82%

2010 Projected Benefit Obligation: $8.337 billion

Total Amount Under Funded: $2.549 billion

Source: UBS

#1: AK Steel Holding Corp. (NYSE: AKS)

Under Funding as a % of Market Cap: -136.65%

2010 Projected Benefit Obligation: $3.529 billion

Total Amount Under Funded: $1.056 billion

Source: UBS

14 Biggest Layoffs of 2011

Companies will have to cut pension benefits or see massive rebounds in the market to recoup losses.
Other firms have turned to layoffs to cut costs.
Click here to see the 14 biggest layoffs of 2011 thus far >

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