US - American Electric Power (AEP) has made a US$320m cash contribution to fully fund its pension liabilities, achieving a goal it set at the start of 2005.
In January 2005 the Ohio-based company announced that it had made a voluntary $200m contribution to the pension fund and said it intended to fully fund its program by the end of the year by making quarterly contributions of $100m. The $320m cash injection was made on Dec 29 2005.
A spokesman for AEP said: “They estimated at that time (January 2005) that paying $100m a quarter, so approximately $400m, would fully fund it. But we actually ended up putting in $626m.”
Michael Morris, AEP´s chairman, president and chief executive officer, said: As lawmakers debate how to address growing pension insurance liabilities, we are very pleased to have achieved our goal of fully funding our pension program.
“We weren´t required to make additional investments into our pension plans, but we believed it was very important to invest in the future financial well being of our employees, retirees and their dependants.
Fully funding our plans will also enhance our balance sheet and reduce our tax liabilities.
AEP’s retirement trust currently holds more than $4.1bn in assets, covering pension obligations for more than 40,000 individuals.
The Pension Protection Fund (PPF) has published contingency planning guidance for trustees to help them manage risk.
The trustees of the Autoenrolment.co.uk and Moore Stephens master trusts have been fined for "deficient" chair's statements after failed court action against The Pensions Regulator (TPR).
Henry Tapper shares his thoughts on how IGCs could provide value for money statements that people wanted to read