This is about ACLP. 4D asks about liquidity of ACLP. Why is there NO liquidity requirement for the 15% retired employees? I think this is the major source of liquidity needs. Actually I said ACLP has average liquidity requirement. - sticky
Low Liquidity Justifications: The workforce is younger than the industry avg, the active employees over age 50 is lower than the industry, plan is fully funded, company is financially sound, has lower D/E, and higher ROE. Greater Liquidity Justifications: Lump sum or annuity option, and retired employees are 15% vs. 10% for the industry. The low liquidity requirements outweigh the greater liquidity requires. I think that line that states “Few employees are planning to retire” is what makes this company have low liquidity needs.