Catherwood LibraryILR School

Currently, companies must calculate pension liabilities based on interest rates offered on 30-year Treasury bonds. Due to the fact that treasury bonds are backed by such a high standard, companies are forced to put a large sum of money into their pension funds. Corporations argue that this money could be better used in investment, which would create more jobs. The Bush administration has proposed a plan that would link the calculation of corporate pension liabilities to corporate bond rates,which would lower the amount of money that companies would have to put into their pension funds.