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Most pension plans may be underfunded next year

NEW YORK, Nov 25 (Reuters) - Only one in five corporate pension plans will have enough funds to fully cover liabilities next year if weak economic conditions persist, according to an analysis released on Monday by a consulting firm.

The firm, Watson Wyatt & Co. , also said if the weak stock market continues, the percentage of companies that will need to contribute to their pension plans next year could more than double to 65 percent.

U.S. companies will have to pump billions of dollars into pension plans weakened by the current bear market. Federal law requires companies to protect the solvency of pension plans, which guarantee benefits to retired workers.

In the third quarter of this year, heavyweights International Business Machines Corp. and General Motors Corp. disclosed that their pension plans were underfunded. Many other companies have followed suit.