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.
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.
