The End Of (Most) Pensions

摘要

A person just entering the labor force can basically forget about ever receiving a pension from his or her employer—unless that employer is the government. In recent weeks, a number of name-brand companies, such as IBM Corp. and Alcoa Inc., decided to freeze their existing pension plans. Workers already covered will continue to get what they were promised. But others won't. This is just the tip of the pension iceberg. By the end of this year, or shortly thereafter, another change in Financial Accounting Standards Board rules will require manufacturers and other firms to post the actual costs of benefits on their financials. Companies no longer will be able to shortchange the pension system and disguise their shortfalls in their income statements or on their balance sheets. Consequently, most firms will gradually drop their pension systems entirely for new employees.