Quantitative Easing Tough on Pensions
December 28, 2011 at 09:13 AM EST
From the WSJ: While quantitative easing boosts the value of pension assets, it lowers investment returns and increases estimates of future liabilities. Because typical defined-benefit plans are only 70% funded and face liabilities several years longer than their assets, that leads to wider deficits…But many trustees say the best response would be for the BOE [...]