| Title: | The Digital way of working |
| Moderator: | QUARK::LIONEL ON |
| Created: | Fri Feb 14 1986 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 5321 |
| Total number of notes: | 139771 |
Looking at "Your Summary Annual Reports" one sees that the
Medical and Dental Assistance plan had "$0 in administrative expenses."
On the other hand the Pension Plan paid $6,441,338 in benefits plus
$6,029,589 in expenses. I presume that is administrative expenses, and
if so, it seems rather HIGH to me to pay $6M to administer net value
of $1,335M. Percentage wise it is not much; what do you think?
Rick
Merrill
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 1104.1 | seems odd to me, too | MAHIMA::TOPPING | Mon May 14 1990 15:08 | 7 | |
I had the same thought - it seems odd that we spend about as much to
administer the plan as it pays in benefits.
I was also curious about the statement that there were $0 in employer
contributions. Does this mean that the investments in the plan were
profitable enough that DEC didn't have to contribute. A big change
from last year's investment loss.
| |||||
| 1104.2 | PENSION PLAN EXPENSES FOR PENSION INVESTMENTS | AKOV13::SCHMALZ | Mon May 21 1990 11:10 | 13 | |
The expenses for the pension plan referred to in the Summary Annual Report are primarily interest on real estate mortgages. The pension fund has about 10% of its assets in real estate, and some of the real estate have mortgages. The investment management fees and custodial fees are paid by Digital directly and not by the pension plan. In 1987, Congress passed legislation which prohibits companies from making tax deductible contributions to their pension funds if the ratio of the pension plan's assets to vested liabilities is greater than 150%. Since Digital's ratio is well over 150% currently as a result of prior year's contributions and investment returns, Digital can no longer make tax deductible contributions. In addition, if Digital did make a contribution, there would also be a 10% excise tax penalty. | |||||