Skip to Main Content

Pension Risk Transfers Have Several Downside Risks for US Plan Sponsors

Pension Risk Transfers (PRTs), including the increasingly popular partial annuity purchase, are a set of tools used frequently by US plan sponsors to de-risk their pension plans. These transactions are intended to lower the risk and cost of the plan by shrinking its size. However, in many cases, they may achieve the opposite result. Specifically, […]

March 2022

Four Key Strategies for Managing Pension Risk

While overseeing pension plans is increasingly complex and there’s no silver bullet solution, employing these four strategies can do much to reduce risk. CFOs at companies that offer defined benefits might be forgiven for feeling frustrated that, in addition to oversight responsibility for company financial performance, shareholder relations, accounting, tax, and myriad other functions, they […]

July 2019

A Balancing Act: Strategies for Financial Executives in Managing Pension Risk

As pressures on pensions mount, we believe financial executives are best served by re-evaluating major decisions in terms of the true tools at their disposal. In this paper we review four levers that are fundamental drivers of pension costs and outcomes: asset returns, liability hedging, contribution policy, and benefit management. Balancing these levers is critical to enabling greater probability of success in managing pension risk, and we introduce a framework for chief financial officers and other financial executives to use in doing so.

November 2017

Pension Risk Management

Asset management and investment banking firms across the globe continue to develop a variety of liability driven investing (LDI)–focused products and solutions for the pension plan community; however, there remains broad confusion over the meaning of LDI.

February 2011