Re: [OM] Kodak Chapter 11

[Piers Hemy]

The employing corporation ALWAYS has access to pension funds in the sense
that the employer contributions are (obviously) the responsibility of the
employer! But I think it's more subtle than that - since pension fund
contributions represent a drain on tax revenue (taxable profits are reduced
by the amount contributed to the pension scheme) it is in the government's
interest to control how much goes into the pension scheme, to ensure that
the scheme is not over-funded as a way of avoiding tax on profits. I
distinctly recall that for all of the latter half of the 1980s there were
zero employer contributions to my then employer's pension scheme, based on
actuarial computations that the scheme was adequately funded. A problem
arises when external factors reduce the scheme's income from investments AND
at the same time reduce the employer's profits from which contributions are
to be made to make up the suddenly-arisen shortfall.

Piers

-----Original Message-----
From: Andrew Fildes [mailto:afildes@xxxxxxxxxxxxx] 
Sent: 19 January 2012 21:39
To: Olympus Camera Discussion
Subject: Re: [OM] Kodak Chapter 11

I still can't understand how a corporation can have ANY access to pension
funds, bankruptcy notwithstanding

--snip

-- 
_________________________________________________________________
Options: http://lists.thomasclausen.net/mailman/listinfo/olympus
Archives: http://lists.thomasclausen.net/mailman/private/olympus/
Themed Olympus Photo Exhibition: http://www.tope.nl/