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.
A buyout tool which provides schemes with up-to-date pricing and comparisons between insurers has been launched by JLT Employee Benefits.
The DB white paper sets out plans to review the funding regime, with 'prudent' and 'appropriate' possibly redefined. But James Phillips asks if this could this signal a return to an MFR-like approach?
The trustees of GKN's pension schemes have agreed a package of mitigation measures that would improve funding to a "more prudent level" if Melrose's offer is accepted by shareholders next week.
While the new powers are welcome, most respondents doubt it will make a difference to the outcomes for members, Pensions Buzz respondents say.