Downfall of a pension plan

The same near-zero interest rates that fattened the investments of the pension fund for ILM Group have also dramatically increased the amount of money the company needs to set aside to cover future payments to retirees. The Indiana insurer’s obligations overwhelmed its stock market gains in recent years.

Low interest rates send pension obligations soaring.
Sources: ILM Group, Federal Reserve. The Washington Post. Published on May 24, 2013, 11:21 a.m.
 
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