Perspective: Shifting tides in pension plan financial management

While the inherent financial risks of pension plans have not changed, the way plan sponsors must manage those risks has. Under new funding and accounting rules, the smoothing techniques for minimizing asset and liability volatility are no longer available, and any mismatch between the two now appears on the balance sheet. This Perspective looks at how sponsors can manage pension risk using an integrated, liability-driven investment approach, without necessarily having to reduce the long-term expected return on assets.  (Perspective, 1 Aug 2007, 16 pages)

• Full Perspective (PDF)

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