Macroeconomic Effects on Stock Market Meltdown and New Pension Rules
Dr. Robert Wescott of Keybridge Research takes a second look at the impact of pension regulation on the economy in light of the current economic downturn
Dr. Robert F. Wescott, President of Keybridge Research, revisits his earlier analysis on pension smoothing and unemployment in a memo for the Business Roundtable initiative on consumer health retirement. He discusses how newly defined-benefit pension plan rules under the Pension Protection Act of 2006 and the current meltdown in the global equity markets are combining to force U.S. companies to make large additional pension funding contributions. He concludes that these additional required contributions come at an especially bad time from a macroeconomic perspective, potentially compromising business recovery, contributing to unemployment, and prolonging and deepening the recession.
Related Links
- Macroeconomic Effects on Stock Market Meltdown and New Rules Under Pension Act of 2006 Read More
- Pension Smoothing Changes Would Worsen Job Losses in a Recession Read More
Washington DC 20007