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<<Part I

If the equity market were to rise less than 7% this year, the following firms would be particularly impacted. Column 2 shows some firms have expected returns of 9%. This would appear particularly optimistic, especially since all firms on the list have pension plans that are underfunded by at least $1billion and have a substantial asset allocation to equities

Company Name

Ticker Symbol

Pen Plans-LT Rate of Return

Pension Asset Alloc-Equity

Pension-Funded Status

ABBOTT LABORATORIES

ABT

8.200

70.000

(1,040.000)

AES CORP

AES

8.000

57.230

(1,280.000)

AIR PRODUCTS & CHEMICALS INC

APD

8.800

68.000

(1,135.000)

ALLSTATE CORP

ALL

8.500

45.000

(1,106.000)

ALTRIA GROUP INC

MO

8.000

59.000

(1,205.000)

AMERICAN ELECTRIC POWER CO

AEP

8.000

52.500

(1,298.000)

AMERICAN INTERNATIONAL GROUP

AIG

7.750

56.000

(1,888.000)

ANHEUSER-BUSCH INBEV -ADR

BUD

8.200

53.000

(2,214.000)

ARCELORMITTAL -ADR

MT

7.395

55.000

(1,957.000)

ASTRAZENECA PLC -ADR

AZN

6.750

49.000

(3,391.000)

AT&T INC

T

8.500

50.000

(3,977.000)

CATERPILLAR INC

CAT

8.500

70.000

(3,780.000)

CELANESE CORP

CE

7.940

46.000

(1,013.000)

COMPUTER SCIENCES CORP

CSC

8.500

56.000

(1,218.000)

CONSOLIDATED EDISON INC

ED

8.500

67.000

(2,531.000)

CONTINENTAL AIRLS INC -CL B

CAL

8.250

69.000

(1,258.000)

DISNEY (WALT) CO

DIS

7.750

44.000

(2,159.000)

EATON CORP

ETN

8.950

75.000

(1,568.000)

ENTERGY CORP

ETR

7.250

67.000

(1,230.470)

EXELON CORP

EXC

8.500

62.000

(3,643.000)

GOODYEAR TIRE & RUBBER CO

GT

8.500

64.000

(2,715.000)

HEWLETT-PACKARD CO

HPQ

7.500

40.200

(4,482.000)

INTL PAPER CO

IP

8.250

49.000

(2,760.000)

ITT CORP

ITT

8.870

42.000

(1,391.900)

JOHNSON & JOHNSON

JNJ

9.000

76.000

(2,526.000)

JOHNSON CONTROLS INC

JCI

8.500

62.000

(1,086.000)

KIMBERLY-CLARK CORP

KMB

8.170

63.000

(1,247.000)

KRAFT FOODS INC

KFT

8.000

68.000

(1,703.000)

MOTOROLA INC

MOT

8.250

65.000

(2,387.000)

NAVISTAR INTERNATIONAL CORP

NAV

9.000

66.000

(1,508.000)

NCR CORP

NCR

7.100

56.000

(1,048.000)

PARKER-HANNIFIN CORP

PH

8.500

60.000

(1,144.818)

PFIZER INC

PFE

8.500

47.100

(6,507.000)

PG&E CORP

PCG

6.800

55.000

(1,436.000)

PPL CORP

PPL

8.000

50.000

(1,290.000)

PROCTER & GAMBLE CO

PG

7.400

42.000

(3,706.000)

PUBLIC SERVICE ENTRP GRP INC

PEG

8.750

66.000

(1,103.000)

RAYTHEON CO

RTN

8.620

39.000

(4,602.000)

REYNOLDS AMERICAN INC

RAI

8.240

51.000

(1,216.000)

ROCKWELL COLLINS INC

COL

8.750

65.000

(1,040.000)

SANOFI-AVENTIS -ADR

SNY

6.860

51.000

(5,734.233)

SOUTHERN CO

SO

8.500

72.000

(1,131.000)

TYCO ELECTRONICS LTD

TEL

7.540

44.000

(1,099.000)

XEROX CORP

XRX

7.300

45.000

(1,633.000)

Disclosure: No positions

Source: The Next Shoe to Drop? Corporate Pension Plans - Part II