These plans have been around for a long time, but are now being viewed negatively by employers. Much of that is due to not being aware of how to best manage the growing risks inherent in these plans. Without proper modeling, it is difficult to take proper action and mitigate these risks.
In this paper, we will discuss the various underlying risks and ways that plan sponsors can manage them so they don’t become a significant burden while continuing to provide meaningful retirement income to plan participants. As we indicated in our first paper in this series, we will be discussing other plan design options in the future. In this paper we will only focus our attention on the traditional defined benefit plan and how to better manage risks within these plans. Other plan designs provide more options to share these risks and will be discussed later on.
Here is Part 2:
Introduction Building on our previous discussion of sequence risk, this chapter focuses on actionable strategies…
IntroductionMany actuaries and investment consultants provide trustees with simple projections to show where the financial…
This first installment in our whitepaper series introduces the foundational challenge facing mature pension plans:…
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