Should I Stay or Should I Go? Break Even Funding Ratios for DB Pension Plan Participants

2011 ◽  
Author(s):  
R. Molenaar ◽  
Kim Peijnenburg ◽  
Eduard Ponds
Keyword(s):  
Pension Plan

Life Events and Pension Plan Participant Engagement

2017 ◽  
Author(s):  
Matthew Blakstad ◽  
Elisabeth Brrggen ◽  
Thomas Post
Keyword(s):  
Life Events ◽  
Pension Plan ◽  
Participant Engagement

Pension Plan Decisions

2009 ◽  
Author(s):  
Alistair Byrne ◽  
David P. Blake ◽  
Graham Mannion
Keyword(s):  
Pension Plan

Getting More from Less in Defined Benefit Plans

2018 ◽  
Author(s):  
Daniel W. Wallick ◽  
Daniel B. Berkowitz ◽  
Andrew S. Clarke ◽  
Kevin J. DiCiurcio ◽  
Kimberly A. Stockton
Keyword(s):  
Interest Rates ◽  
Pension Plan ◽  
Defined Benefit ◽  
Portfolio Risk ◽  
Defined Benefit Pension Plan ◽  
Increased Risk ◽  
Investment Returns ◽  
Defined Benefit Plans ◽  
Asset Class ◽  
Reduced Costs

As global interest rates hover near historic lows, defined benefit pension plan sponsors must grapple with the prospect of lower investment returns. We examine three levers that can enhance portfolio outcomes in a low-return world: increased contributions; reduced investment costs; and increased portfolio risk. We use portfolio simulations based on a stochastic asset class forecasting model to evaluate each lever according to two criteria: the magnitude of impact and the certainty that this impact will be realized. We show that increased contributions have the greatest and most certain impact. Reduced costs have a more modest, but equally certain impact. Increased risk can deliver a significant impact, but with the least certainty.

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