A Hewitt Associates survey showed 67% of corporate plan sponsors expect to maintain their pension fund investment allocations, despite market conditions. Of the 174 financial executives surveyed, only one-third are contemplating such changes, the survey found.
The survey also found that while most companies believe their pension fund shortfalls are manageable, 8% are considering terminating their pension funds because of burgeoning liabilities. Also, 61% will need to contribute between $1 million and $10 million each to their pension funds this year, while another 25% will need to contribute up to $75 million each and 4% will need to contribute as much as $200 million each.
