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  National
Markets/Coverages: CFC Says New Cyber Product Includes 2 Industry Firsts
Supreme Court Largely Backs FDA on Flavored Vapes
Verisk Buy of Nasdaq Subsidiary Gains Access to Hundreds of Catastrophe Models
Lemonade: 700K Customers on the Car Insurance Waitlist
  East
Macy's to Claw Back Executive Bonuses Due to Accounting Scandal
Suspended Driver Facing Multiple Charges in Brooklyn Crash That Killed Mom, Kids
AM Best Reviews Westminster American Following Return of Previous Owner
Earlier Medical Event Does Not Shield Later Negligent Acts: Massachusetts High Court
  Midwest
People Moves: Pete Anhalt to Lead The General Following Sentry Acquisition
Iowa Man Who Falsified Rolex Watch Claim Sentenced to 10 Years in Prison
Chipotle to Settle Kansas Religious Harassment Lawsuit
Severe Storm Threatens Central US With Heavy Rains, Tornadoes
  Southeast
People Moves: Pete Anhalt to Lead The General Following Sentry Acquisition
Florida's Universal P&C Overstated Claims to Cat Fund, Must Pay $4M Fine, AG Says
North Carolina Commissioner Settles Mobile Home Rate Increase at 11%
Another Kentucky Farmer Pleads Guilty to Crop Insurance Fraud
  Southcentral
TDI to Adopt 11.5% Workers' Comp Rate Decrease
Severe Storm Threatens Central US With Heavy Rains, Tornadoes
BlackRock Plans for Texas ETF Amid Its Push Into Lone Star State
J&J Plunges After Plan to Settle Baby Powder Suits Fails
  West
California FAIR Plan Stabilization Act Moving Through Legislature
Las Vegas Telsa Arson Suspect to Remain Jailed Until Trial
Getty Museum to Sell $500 Million of Debt for Fire Protection
Viewpoint: Smoke Damage from LA Wildfires Leaves Questions to Be Answered
  International
Firm Issued Fake Insurance for Russian Oil Tankers, Norway's Regulator Says
UK to Compel 1,000 Firms to Shore Up Cyber Defenses After Hacks
North Korean IT Warriors Increasingly Target Europe, Google Says
Swiss Market Regulator FINMA Restructures; Head of Insurance Division to Step Down
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Saturday, January 31, 2009

Big pension plans lose $469B in 2008: Study

Hammered by the crash in the equities markets, pension plans sponsored by large companies suffered a dramatic reversal of fortune in 2008, with the average funding level sinking to 75% at year-end, down from 104% a year earlier, according to an analysis released Wednesday.

That unprecedented drop was the result of a huge decline in the value of assets held in pension plans sponsored by the 772 companies in the S&P 1500 that offer defined benefit plans.

New York-based Mercer L.L.C. estimates that the pension plans lost $469 billion in 2008, converting a $60 billion surplus at the end of 2007 to a $409 billion shortfall at the end of last year.

"This is a very difficult time for pension funds," said Adrian Hartshorn, a Mercer principal in New York.

The fall in funding levels "will reduce balance sheet strength, which leads to consequences for several areas of the business, including capital-expenditure decisions, loan covenants and credit rating decisions," Mr. Hartshorn said.

To meet funding requirements set by federal law, employers will have to pump in tens of billions of dollars in new contributions to shore up their plans, while some companies may decide to freeze their plans.

More employers will take a step back and ask if their plans still are viable, Mr. Hartshorn said.

The release of the Mercer analysis comes as business groups are expected to renew their push to convince federal legislators to temporarily ease funding rules. Last month, Congress approved legislation that provides a modest relaxation of funding requirements.

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