Investment Slump Hits Pension Plan Sponsors National Underwriter (Life and Health Financial Services Edition) (01/27/03) Vol. 22, No. 4 p.9; De Simone, Marcella
A new survey by Deloitte & Touche shows that companies will have to pay out more in 2003 to compensate for the losses they sustained in traditional defined-benefit pension plans. Of the executives polled for the survey, 40 percent indicated that their employers' pension expenses would rise by more than half in 2003, while another 20 percent said they anticipated increases of between 26 percent and 50 percent. David Hilko, benefits practice leader at Deloitte's Chicago office, says agents who sell group benefits may be affected by these huge pension funding deficits. "You may see companies reducing health benefits to get the total cost of providing benefits more in line with how they want to pay," Hilko says.