Yeah, so what? If you read the explanation, it is clear that the number one factor affecting the funding is the change in the discount rate that the government has "required" them to use to calculate future returns. Second was the market performance. Third was the company contributions.
Basically, the government has punted on controlling pensions. Discount rates used by both private and public pension funds are absurdly high. No credible personal financial planner would ever build your retirement plan using them.
We are also at the back end of a multi-year upswing in the market. Not a lot of cost cutting left to do. Profits and cash are at an all-time high for the SP500. Next move is downward, most likely. Of course, Mr. Market can always go postal and do the unexpected.
As for UIS cash flow to fund future contributions....
Besides, this only affects marginal pension recipients.
It doesn't change the basic fact that UIS will continue to struggle to fund pensions in the real world and it will be a drag on cash flow.
It just makes it appear that the pension liability has shrunk which is the man reason in my opinion that the company can't find a suitor. The restriction being lifted of the Social Security Level Income option does cost them immediate cash. They told me 80,000 people got the letter that have not started their pension. I'm just waiting for a cyclical miss in Clearpath and the stock will be back to 16 and a buying opportunity .