Hands in the Cookie Jar
Article Abstract:
New government rules are allowing companies to easily recapture surplus cash from pension funds. After ten years of regulation many pension funds have become overfunded. Also contributing to the overfunding status was the stock market boom of 1982-1983 in which many funds are invested, and the high interest rates of recent years. When an employer terminates a plan he has the right to take back any assets left over after accrued benefits are paid. Under Reagan Administration policy companies will be able to cancel one defined benefit plan, take the surplus, and start another. Takeover artist's are especially interested in companies' overfunded pension plans. New regulations are now being proposed that are expected to encourage termination. Further legislation is being proposed to protect the funds.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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Gray Eminence
Article Abstract:
Gray Company is a private public relations and lobbying office. Robert K. Gray is a personal friend of Ronald Reagan. The company's office in Washington, D.C. lists several important people and organizations among its clients. Gray intends to offer shares in his company, now named Gray & Company Public Communications International Incorporated, in February. The company is growing rapidly but its assets are essentially in its list of clients. There are few tangible assets. If the shares are offered at the projected price, the stock's price- earnings ratio will be around twenty.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1984
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A Casino Bets on a Tax Shelter
Article Abstract:
The owners of a money-losing Atlantic City casino have decided to sell it, to a group of investors who will use it as a tax shelter. State officials have approved the deal, though they were opposed to the deal's complexity. The casino hopes to use the money raised by the sale to expand and possibly become profitable.
Publication Name: Barron's
Subject: Business, general
ISSN: 1077-8039
Year: 1983
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