Perfect Storm Prompts Changes in Pension Accounting
Document Type
Article
Publication Date
5-1-2007
Abstract
Over the first half of the decade, pension and other postretirement benefit plans were hit hard by a perfect storm of economic forces. Investment returns were irregular and often less than expected. Falling interest rates caused employers' obligations to soar. And many old-line industries experienced a cash crunch that encouraged management to offer increased pension benefits in lieu of higher wages. A shift in demographics has resulted in far fewer younger workers and many more who have retired or are about to do so.
Publication Information
Miller, Paul B. W. and Bahnson, Paul R.. (2007). "Perfect Storm Prompts Changes in Pension Accounting". Journal of Accountancy, 203(5), 36-42.