Pension Accounting: A Dismal Science?

The New York Times calls pension accounting a “dismal science” in this article by Mary Williams Walsh: “Pension Reserve: What’s Enough?” The article discusses the lobbying efforts going on in Washington for relief for certain industries from the pension funding rules. The article states that “[a}lways on the minds of pension policy makers is General Motors, whose $25 billion worldwide pension deficit is larger than its market capitalization of $21.8 billion.” The Business Roundtable in this letter warns Congress that the whole economic recovery may be at stake if Congress does not provide relief. The letter states: “Companies cannot commit to building new plants, launching new research projects, or hiring new employees if that cash is needed to fund pensions.”