Bond Yield Hits Plans
Business Insurance (12/24/01) Vol. 29, No. 26 p.20; Geisel, Jerry

ACLI is among a group of trade organizations that have warned lawmakers that the dip in T-bond rates will have an adverse impact on defined benefit pension plans. Eight groups including ACLI and the ERISA Industry Committee sent a letter to the Senate Democratic and Republican leadership warning that the fall in T-bond rates has significantly inflated pension liabilities and has led to increased employer funding obligations. In the letter, the groups recommended allowing employers to measure plan liabilities using Moody's Investor Services' AA Corporate Bond Index.

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