Rather than jump on the bandwagon of lump-sum payouts, FedEx continues to donate more to its U.S. pension plans than is required to fund future liabilities.
The pension insurance fund is stepping in because “it is clear that Sears’ continuation of the plans is no longer possible.”
With many pension plans too low-funded to justify aggressive fixed-income investment, lump-sum buyouts and annuities are popular derisking strategies.
With PBGC premiums soaring, sponsors face more pressure to fund up their plans. General Motors' response: do it with debt-issuance proceeds.
