Aluminum maker Alcan is refuting a report from Moody’s Investor Services that says it has Canada’s biggest pension shortfall.
Moody’s said Alcan’s pension plan is underfunded by about $3.1 billion(US$2.7 billion)but a published report today says Alcan is arguing the validity of those figures. The report quotes Rhodri Harries, vice-president and treasurer with Alcan who says about US$1 billion of that figure is part of Alcan’s business in Europe. He said that pensions there are “pay-as-you-go” and are “unfunded by design.”
“There is no regulatory requirement to fund them and no tax benefits,” he said in the published report.
Harries also stressed that Alcan is one of the largest employers in Canada and the size of its liability should not come as a surprise to anyone.
“We are in a very good position to service those liabilities through the combination of the assets that we have put aside, through the strength of our business and through the strength of our balance sheet,” he said.
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