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Finance Chiefs Concerned About Pensions

Finance Chiefs Concerned About Pensions

A new survey conducted by Mercer and CFO Research Services found that chief financial officers have serious concerns about their pension plans adversely impacting their companies' job growth and competitiveness into 2012.

According to a release from Mercer, more than half of CFOs surveyed - 59 percent - reported that their company's defined benefit poses at least some risk to its financial performance in the near term.

The issues responding finance chiefs said were affecting pension plan funding and risk management included market turmoil and volatility and low interest rates, among others, the survey found.

Plan sponsors have made some efforts to manage their pension risk exposure by making a variety of plan design and investment changes. However, their efforts may not be enough relative to their benefit obligations," Jonathan Barry, the Boston-based Defined Benefit Risk Leader for Mercer’s US Retirement, Risk and Finance business, said in a statement.

The Mercer survey results come as a number of companies are beginning to sell investment-grade bonds in order to fund contributions to pensions, reported The Wall Street Journal.