Originally Posted by
FoxHunter
I believe FamilyATM is on the right track but these Executive Pensions would never be available for employees.
These Executive Retirement Plans have no benefit limits and are not funded. When reported the liability is lumped together with the normal pension plans so an over funded pension plan may appear underfunded. These non funded Executive plans have been used to show employees at numerous US Corporations reasons to reduce or eliminate their pensions. It sound like it in now working with FedEx pilots.
http://www.jec.senate.gov/archive/Do...s06oct2005.pdf
Boiling down the 5 page paper FoxHunter linked (correct me where needed): when executives switch to non qualified plans (they are not on the same plan with the workers) the WSJ investigation showed there is a correlation with the company then ending or freezing DB plans as that elimination of liability is now counted as a positive towards earnings. And, a lot of executive compensation is tied to earnings and stock so it really boosts executive compensation when DB plans die.