Pension funding drops to lowest level in 6 years

Hey, CEOs need their bonus

Even as stock market rose last year, pension funding levels at America's biggest companies in 2014 fell to levels not seen since just after the financial crisis.

One big reason: Employers cut back on contributions to their plans to the lowest amount in six years, according to an analysis by benefits consultant Towers Watson, thanks, in part, to a break offered up by Congress last summer to bail out the Highway Trust Fund.

As employers cut back on contributions, pension plans face higher costs meeting their financial promises to retirees. Last fall, new mortality tables showing retirees are expected to live longer raised pension plans' liabilities, forcing them to set aside more money to meet them.


http://www.msn.com/en-us/money/retirement/pension-funding-drops-to-lowest-level-in-6-years/ar-AAb37lM