"When a sponsor terminates an overfunded DB plan and buys annuities to settle plan liabilities ... [1] Plan liabilities may have to be written up, reducing net worth. [2] That write-up typically will have to be run through the income statement, generating a (non-recurring) expense and reducing net income. [3] Unrecognized losses may also have to be run through the income statement.... [4] Any 'pension income' generated by the plan surplus will disappear -- reducing future net income. These financial hits -- particularly for earnings sensitive companies -- may make the cost of terminating an overfunded plan prohibitive."  MORE >>