Pension Plans of Coca Cola Co. Vs. Pepsi Inc.

Compare the pension plans of Coca Cola and Pepsi, noting what type of pension, and funded status as of 2007 end of year.

A) Coca Cola Co.

This is a Defined Contribution Plan.

For its primary plan the employer matches 100% of participants contribution, up to 3% of compensation.

Benefit obligation at end of year for 2007 was $3,517 million.

Benefits paid for pensions plan were $41 million, in payments related to unfunded pension plan paid from Coca Cola Co. assets.

Defined Contribution Plan is composed of:

Employer contribution-is determined by plan

Risk is borne by the employees

Benefits are based on plan value

B) Pepsi Inc.

This is a Defined Benefit Plan.

It is determined by the interest rate that is used to determine the present value of liabilities, and is the discount rate

For 2007, the Expense Discount Rate...
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