Plan portfolios suffer major losses

Companies may have to increase contributions

The problem of what to do with pension plan surpluses may have become a moot point.

Losses in equity markets mean losses in the value of Canadian pension plan portfolios – perhaps as much as a 10 to 15 per cent decrease.

Canadian equities were already suffering a downturn, particularly high tech stocks like Nortel Networks Corp. Then came the Sept. 11 terrorist attacks, which sent markets into a tailspin.

This means that some companies will have to increase their pension plan contributions, even though that may be difficult to do in these troubled economic times.

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