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  National
Liberty Mutual CEO Sweeney Elected Chairman as Long Retires
Trump Temporarily Lowers Tariffs for Most Countries, Raises Them for China
Catastrophe Bonds Among Few Asset Classes Withstanding Meltdown
Hackers Spied on 100 US Bank Regulators' Emails for Over a Year
  East
Jazz Pharma to Pay $145 Million to Settle Narcolepsy Drug Antitrust Case
Singer Sues Metropolitan Opera Over Her Dismissal After Giving Birth
'CJ's Death Was Completely Avoidable,' Say Parents Suing Bucknell Over Son's Death
Gov. Moore Swears In Executive Team Including Insurance Commissioner Grant
  Midwest
People Moves: Inszone Names Strong, Cook Midwestern Leadership
Missouri Roofer to Pay $290K Over Teen Worker's Fatal Fall
Keystone Oil Pipeline Is Shut After a Spill in North Dakota
How Westfield Is Implementing AI in Claims
  Southeast
PointeNorth Expands With Three Alabama Agency Acquisitions
Judges Dismisses Former Governor's Defamation Lawsuit Against Miss. News Outlet
People in Miami's 'Little Venezuela' Fear Moves Against Immigrants
Louisville, Other Parts of Kentucky Brace for More Flooding as Rivers Crest
  Southcentral
Texas Oil Executives Are Frustrated at Trump for Crushing Crude Prices
Texas Bill Would Add New Regulations for Renewable Energy Sector
Lufkin, Texas Meat Processing Plant Receives DWC Safety Recognition
RFK Jr. Visits Texas Measles Epicenter After Death of Second Child Who Was Infected
  West
State Farm's California Emergency Rate Request Dropped to 17%
Report Shows California Workers' Comp Medical Review Denials Still Rarely Overturned
People Moves: Reeder Joins Alliant Employee Benefits as Vice President
New Mexico Insurance Department Moving to Increase FAIR Plan Limits
  International
MNK Group Unveils New Unified Brand
China Financial Regulator to Raise Insurance Funds' Limits for Stock Investment
California Wildfires Had Little Impact on Reinsurers' Risk Appetite During April Renewals
Markets/Coverages: MGA Helix Underwriting Launches Professional Lines Program
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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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