Tag: defined benefit plans

New Risk Assessment Required for DB Plans

ASOP 51 requires actuaries performing valuations for defined benefit plans to identify risks that, in the actuary’s professional judgment, may reasonably be anticipated to significantly affect the plan’s future financial condition, and Eric Keener, with Aon, says this may help plan sponsors avoid adverse actions.

PBGC Posts 2019 Premium Rates

A table on the PBGC’s website shows that the flat-rate premium for single-employer plans has grown from $31 in 2007 to $80 in 2019, and the variable-rate premium has grown from $9 to $43.

MassMutual Paper Serves As Primer for PRT Considerations

“While PRT can be a highly effective tactic for plan sponsors to reduce risk and shift liabilities off their books,” MassMutual says, “it’s possible to increase pension costs and risks if a PRT is not executed with long-term goals in mind.”

Pension Investment De-Risking Primer

Sterling Price, managing consultant at Findley, discusses how LDI and a dynamic investment policy help to de-risk pension plan assets.

Your DB Funded Status Has Improved? Now What?

Corporate DB plans have experience funded status improvement, and LDI strategies help plan sponsors preserve this; however, investment committees are looking for new asset classes that can provide greater returns at a reasonable level of risk.