US - Stricken automobile manufacturer Ford may be forced to make a US$4bn contribution to its pension scheme.
As a result, in a testimony to the US House Financial Services Committee, it said it may be forced to make an additional contribution of $3-4bn to its US pension scheme starting in 2010 if investment conditions did not improve.
Ford said it provided retirement benefits to some 207,000 retiree members of the United Auto Workers union, and 128,000 more salaried retirees.
The company has so far not had to resort to taking 'bail out' money from the US government, although it did not rule out the possibility.
In the statement, the company said government loans "could be used" if investment returns did not recover or continued to deteriorate, in order to support the funding status of its pension plans.
In this week's Pensions Buzz, we want to know whether or not you believe that business facing financial distress should be able to suspend their auto-enrolment contributions to avoid rising costs.
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