The effect, say some observers, is to encourage a shift to less-risky, shorter-term investments (that is, bonds). While Bemis Corp., for one, currently invests 80 percent of its plan assets in equities and 20 percent in bonds, treasurer Melanie Miller says the company may revisit its investment policy in light of the new law, and consultants expect other companies invested heavily in equities to do the same. Meanwhile, the second phase of FASB's pension-accounting project will address such issues as whether to deconsolidate plan assets and liabilities, which would mean that gains and losses on assets may no longer be included in corporate income and cash flow. — R.F.
Reader Comments» Post a comment