Poll Highlights. PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014

Size: px
Start display at page:

Download "Poll Highlights. PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014"

Transcription

1 PENSION MANAGEMENT RESEARCH PANEL Poll: DB Pension Management Mid-Year 2014 Poll Highlights In the summer of 2014, the Pension Management Research Panel conducted a poll to uncover current practices in defined benefit pension management in North America. Finance executives, board members, and investment committee members from 153 organizations shared their views, investment strategies, and challenges in pension management. POLL PARTICIPANT PLAN SIZE Defined benefit (DB) plans continue to exhibit strong financial health. In 2013, funded status improvements in the 6-15% range were attained by 7 of Canadian plans, and 61% of U.S. plans. Canadian plan sponsors continue to be more committed to offering a DB pension, with 7 offering active plans versus in the U.S. Most plan sponsors intend to keep asset allocation strategies static in Roughly one-third will shift equity holdings to fixed income and alternatives in order to reduce risk and better match liabilities. Canadian plan sponsors are more concerned about pension risk; 7 of Canadians state the primary goal in making asset mix change is to reduce risk versus 41% in the U.S. Real estate is the most popular asset class among those investing in alternatives, 7 of Canadian poll participants invest in the sector. The biggest concern related to alternative investing is the increased level of necessary due diligence. The top risk reduction strategy in Canada is use of a glidepath and/or LDI, implemented by 63% of Canadian respondents, versus a lump sum payment, implemented by 6 of U.S. plans. Plan sponsors are most confident in aligning pension strategy with long-term organizational goals (82% confident or extremely confident), and least confident in taking advantage of market inefficiencies in order to increase return and/or mitigate risk. (19% have no confidence, 37% are only somewhat confident). In order to control the impact of the DB plan on organizational finances, when making pension-related decisions, 73% use external resources along with the internal team, 71% state they holistically consider assets, liabilities, and organizational finances together SEI 1

2 Pension health is strong, Canadians committed to DB Most defined benefit pension plans in North America are financially strong. While the drop in long term interest rates through the year has pushed pension liabilities higher, positive (yet volatile) equity markets have buoyed pension assets, keeping funding levels up and pension health afloat. The majority of poll participants saw their funding levels improve in the 6- range in Today, 90% of U.S. plans are at least 80% funded, while 74% of Canadian plans report to be in the same funding category. Poll results also show that 7 of Canadian plans are active versus in the U.S., indicating Canadians are currently more committed to maintaining the DB promise. FIGURE 1: HOW MUCH DID YOUR PLAN S FUNDED STATUS IMPROVE IN 2013? 40% 30% 20% 0% 14% 21% 43% 2 0% 9% 0-5% % 16-20% More than 20% Canada (Solvency Basis) U.S. (PBO Basis) FIGURE 2: WHAT IS THE CURRENT FUNDED STATUS OF YOUR DB PLAN? 30% 20% 0% 4% 2% 22% 22% 31% 30% 2 22% 31% Below 70% 70-79% 80-89% 90-99% 100% or greater Canada (Solvency Basis) U.S. (PBO Basis) FIGURE 3: WHAT IS YOUR PLAN DESIGN STAGE? CANADA U.S. 17% 4% 34% 2% Active: The pension is active and open to new entrants Closed: The pension is currently closed to new entrants, but participants are still accruing benefits 7 32% Frozen: The pension is currently closed to new entrants and participants are no longer accruing benefits Terminating: The pension is closed, accruals are frozen and the termination process is underway or complete 2014 SEI 2

3 Asset allocation and drivers of change in 2014 Asset mix strategies in place for 2014 indicate that surprisingly, most plan sponsors are not taking advantage of the opportunity to hedge pension liabilities afforded by improvements in funded status. Figure 4 shows plan sponsors intend to keep asset allocation strategies relatively static this year, with more than half (57%) maintaining their current weight to domestic equities, and almost two-thirds (65%) maintaining their weight to international equities. This finding is consistent with a separate study conducted earlier this year (refer to SEI s paper De-risking Considerations for Pension Plan Sponsors: Pension Funding is Up but Investment Strategies Remain Unchanged ). In this study, SEI evaluated data from 820 public company pension plans in Canada and the U.S. The sample showed the funded status of the average defined benefit plan increased from a median of 74% in 2012 to 84% in Again, despite the improvement, asset mix strategies stayed somewhat static at the end of 2013 with the median allocation to equity at 52%, relatively unchanged from FIGURE 4: WHAT ASSET ALLOCATION CHANGES ARE PLANNED FOR 2014? Domestic Equity 37% 57% Fixed Income 9% 5 International Equity 27% 65% Alternatives 22% 72% Cash 8 100% Increase weight Decrease weight No change Of the poll participants that intend to change their asset mix strategy, a small percentage will continue to pursue returns in the equity markets in order to reduce long-term funding ( will increase domestic equities, will increase international equities). Plan sponsors reducing their equity exposure are moving into fixed income and alternative securities. Of the of poll participants planning to increase their fixed income holdings, 84% will do so to better match liabilities and 72% to reduce risk. Figure 5 shows the overall primary goals for making asset allocation changes. FIGURE 5: WHAT ARE THE PRIMARY GOALS FOR MAKING ASSET ALLOCATION CHANGES? Reduce risk 41% 7 Better match liabilities 4 47% Diversify portfolio 19% Increase returns 2 Rebalance 15% Canada U.S SEI 3

4 While almost one-quarter (22%) of poll participants will increase their allocation to alternatives, within this group 65% do so to reduce risk, 50% seek to increase returns and 34% seek to diversify the portfolio (poll participants were able to select multiple goals). Alternative investments continue to garner attraction from pension committees seeking to build more efficient portfolios. As an asset class, alternatives offer unique benefits: Liability Matching: The regular income stream offered by alternatives such as real estate and infrastructure investments typically mimic the liability matching characteristics of long bonds without the interest rate sensitivity tied to bonds. Figure 6 shows the majority (7) of Canadian plan sponsors invest in real estate. Providing exposure to real, tangible assets, real estate has historically produced consistent income throughout the economic cycle. Inflation Hedging: Alternative investments that are linked to real economic growth can provide a hedge against pension liabilities which grow with inflation. Return Enhancing & Diversification: Alternatives offer an opportunity for increased uncorrelated riskadjusted returns and a means to reduce portfolio volatility. The level of volatility associated with alternatives typically falls between that of equities and bonds. FIGURE 6: WHICH ALTERNATIVE ASSET CLASSES DOES YOUR DB PLAN INVEST IN?* Real Estate 7 Private Equity Hedge Funds Infrastructure 39% 44% 44% Structured Products 11% Commodities / Managed Futures Timberlands / Forestry Investing in alternatives continues to be accompanied with challenges. While the high level of necessary due diligence is the top concern expressed by Canadian poll participants (refer to Figure 7), other pressing concerns related to alternative investing involve the lack of liquidity, higher fees, and lack of transparency. FIGURE 7: WHAT ARE YOUR CONCERNS AND CHALLENGES AROUND INVESTING IN ALTERNATIVES?* Increased level of necessary due diligence 7 Lack of liquidity Higher fees Lack of transparency 65% 65% 70% Level of risk involved 39% Higher minimums required 2 *Results include Canadian poll participants only SEI 4

5 Focus on risk reduction and liability matching Figure 5 shows the predominant reasons for making an asset allocation change is to reduce risk and better match liabilities. With the majority of Canadian poll participants committed to are particularly focused on risk reduction. These findings comes as no surprise since after the 2008 crisis, the reality that the funded status of a DB plan could impact the viability of the sponsoring organization became a harsh one. Having experienced a significant fall in funded status, many organizations faced unwanted cash injections and a dent in profits. Sustaining the improved state of financial health enjoyed today requires vigilance over managing pension risk exposure, and understanding sources of pension risk. Roughly 90% of pension risk stems from: Investment Risk = The risk of investment returns falling below expectations. Plans with an overweight to equities can expect to see roughly two-thirds of their total risk budget consumed by investment risk. The uncorrelated relationship between equities and pension liabilities can potentially cause a significant asset/liability mismatch if not properly managed. Interest Rate Risk = The risk that an increase in the value of liabilities outpaces an increase in assets. Liabilities are determined using interest rates. As such, fluctuating interest rates increases the risk that the value of liabilities will increase faster than assets. Inflation Risk = The risk that salary increases and indexation are higher than anticipated. Where pension payments are indexed to consumer price or wage level indexes, inflation uncertainty increases the need to hedge against unexpected changes in price levels. Inflation-linked securities are widely available but typically provide low real returns. The remaining or so of pension risk stems mainly from: Longevity Risk = The risk that retired DB participants live longer than expected, or active participants retire earlier than expected. Manager Risk = The risk that active management performance returns fall under benchmark. Currency Risk = The risk that foreign investment returns fall due to a decrease in the value of foreign currency relative to the local currency. Poll participants shared the risk reduction strategies that play a role in their organization (refer to Figure 8). While the funded status of the pension plan will largely dictate which strategy is most appropriate, overall implementing a glidepath and/or liability driven investing (LDI) is most widely used. FIGURE 8: TO REDUCE RISK, WHICH HAVE YOU IMPLEMENTED OR ARE CONSIDERING IMPLEMENTING? Implement a glidepath and/or LDI Close the plan to new entrants Freeze accruals for participants Purchase an annuity buy-out or buy-in Terminate the pension plan <79% Funded 80-89% Funded 90-99% Funded 100%+ Funded 2014 SEI 5

6 Implement a Glidepath and/or LDI The majority of poll participants (57% in the U.S., 63% in Canada) utilize a glidepath and/or LDI to reduce risk. Overall, LDI keeps pension committees focused on managing assets to liabilities, setting the framework for holistic decision-making. While some firms may use LDI to progress the plan towards termination, others may implement LDI to control the funded status volatility of an open and viable plan. The ultimate goal will depend on plan objectives. A glidepath is essentially an active approach to asset allocation. With acceptable levels of risk established within a portfolio, key trigger points are used to dictate asset mix adjustments with the goal to shed risk. While changes in the funded status serve as the most commonly used trigger point, interest rates and market outlook must also be considered. Because the markets will inevitably move in unexpected directions, glidepath strategies need to be periodically reviewed. Plan sponsors should consider not only derisking, but re-risking when appropriate, as part of an active glidepath strategy. Close the plan to new entrants Over half (57%) of U.S. poll participants, and almost a third (32%) of Canadian participants will close the DB offering to new entrants as a step to exit the defined benefit pension game. While the strategy will help to reduce future risk and costs, the remaining assets and liability sensitivities will need to be managed with the same level of fiduciary care as was afforded prior to the close. Typically, the investment policy will be revised to a more conservative investment approach to reflect the ageing workforce in the remaining plan. Freeze Accruals for Participants While almost half (41%) of U.S. poll participants will freeze accruals, only 5% of Canadian poll participants will follow. As with plan closures, sponsors electing to freeze their DB plans typically do so because the plan no longer offers a competitive benefit for the organization, and freezing the plan will help to reduce costs and liability growth. The need for dynamic ongoing management is also required, otherwise the frozen plan could experience a higher level of volatility relative to when it was active. Purchase an Annuity Buy-Out or Buy-In Over a third (37%) of Canadian poll participants suggest a desire to purchase an annuity to shed liability risk versus 17% in the U.S. A buy-out allows the plan sponsor to offload the obligation to pay pension benefits to an insurance provider, as well as offload the associated risks of those payments. Conversely, in an annuity buy-in, the plan sponsor retains the obligation to pay benefits but receives guaranteed liability cash flows from the insurance company. A buy-in aims to limit the pension plan s exposure to various risks including investment and longevity risk. The price to purchase an annuity typically includes 100% of the value of the liability being annuitized, plus an additional premium for factors related to mortality risk, the interest rate environment, re-investment risk, and administrative costs. It is possible to see premiums of up to 15-20% over the liability value, depending on the membership and other considerations. Cost is an important consideration when evaluating the benefits derived from an annuity purchase. Terminate the Pension Plan As the ultimate end game, plan termination relieves the sponsor from all risks and costs associated with the pension plan. In a voluntary standard termination, the DB plan must be fully funded and all required benefit payments must be disbursed either through lump sum payments or purchased annuities. With continuing deficits, the termination process can be costly and extremely complex to administer, and most plan sponsors view freezing the pension plan as a more advantageous option, hence only 13% opted for this strategy, all residing in the U.S SEI 6

7 Confidence implementing effective plan management varies With pension management becoming increasingly complex and time-consuming, many plan sponsors are evaluating their current governance structures to ensure optimal plan management can be achieved. Poll participants shared their confidence in the organization s ability to successfully accomplish various tasks required for effective plan management. Figure 9 shows plan sponsors are most confident in the organization s ability to align pension strategy with long-term organizational goals (20% state they are extremely confident, 20% are confident). Likewise, the majority of poll participants believe they have a good handle on making manager changes, controlling contribution volatility, and managing the impact of pension expense on the bottom line. FIGURE 9: HOW CONFIDENT ARE YOU IN YOUR ORGANIZATION S ABILITY TO SUCCESSFULLY ACCOMPLISH THE FOLLOWING?: Align pension strategy with longterm organizational goals 20% 62% 14% 3% Implement investment manager changes in a timely and efficient manner 19% 59% 1 3% Control volatility in plan funding contributions 12% 53% 30% 5% Manage the impact of pension expense on corporate finance 53% 29% Take advantage of market inefficiencies in order to increase return and/or mitigate risk 7% 3 37% 19% Extremely confident Confident Somewhat confident Not confident Plan sponsors are least confident in the organization s ability to take advantage of market inefficiencies in order to increase returns and/or mitigate risk. While 37% are only somewhat confident, 19% have no confidence. The ability to capitalize on short or medium-term market inefficiencies requires resources, an informed point of view, and nimbleness to implement that view. As such, confidence tends to correlate with staff size. Figure 10 shows a general decrease in confidence as staff size decreases, (where staff size refers to the number of individuals who dedicate the majority of their time to the investment management of the DB plan.) FIGURE 10: HOW CONFIDENT ARE YOU IN YOUR ORGANIZATION S ABILITY TO TAKE ADVANTAGE OF MARKET INEFFICIENCIES IN ORDER TO INCREASE RETURN AND/OR MITIGATE RISK? 4+ staff 14% 3 43% 7% 3 staff 22% 67% 11% 2 staff 7% 37% 41% 15% 1 staff 29% 37% 24% 0 staff 4% % 100% Extremely Confident Confident Somewhat confident Not confident 2014 SEI 7

8 Plan governance Overall, the majority of poll participants are confident effective plan management is being successfully implemented, according to Figure 9. However, there exists a population of organizations who are not sufficiently confident and may be struggling. For many firms today, the onerous demands placed on already constrained pension committee members can leave little time to proactively focus on strategic pension matters. Many organizations in this situation are now adopting delegated solution models which allow for dedicated resources and sound governance structures to be built. Poll participants were asked what types of services they delegate, or would consider delegating, with the majority (74%) seeking assistance in advisory services including LDI. FIGURE 12: WHAT FUNCTIONS DO YOU CURRENTLY OUTSOURCE OR WOULD CONSIDER OUTSOURCING FOR YOUR PENSION PORTFOLIO? Advisory services including liability driven investing strategy 74% Asset allocation changes within bands established in the IPS 50% Manager changes for all assets classes 4 Manager changes within a single asset class Additionally, when poll participants were asked what strategies are being used to help control the impact of the pension plan on organizational finances, the majority (73%) are adopting delegated solutions to complement their internal teams with external resources. FIGURE 11: WHAT STRATEGIES ARE CURRENTLY BEING USED TO CONTROL THE PENSION PLAN S IMPACT ON ORGANIZATIONAL FINANCES? (CHECK ALL THAT APPLY) Use of external resources in making pension-related decisions (in addition to internal resources) Consideration of assets, liabilities and organizational financials when making portfolio decisions 73% 71% Analytical stress-testing and projections across entire pension portfolio 39% Daily monitoring of performance/funded levels 1 0% 20% 40% 60% 2014 SEI 8

9 The Pension Management Research Panel, sponsored by SEI s Institutional Group, conducts industry research in an effort to provide members with current best practices and strategies for the investment management of pension plans. For more information, please contact SEI at Information provided by SEI Investments Canada Company, a wholly owned subsidiary of SEI Investments Company. This information is for educational purposes only. Not intended to be investment, legal and/or tax advice. Please consult your financial/tax advisor for more information SEI 9

Lump Sum Term-Vested Payouts Is Now the Time?

Lump Sum Term-Vested Payouts Is Now the Time? Institutional Group Lump Sum Term-Vested Payouts Is Now the Time? After a difficult five years overseeing pensions, plan sponsors in the U.S. and Canada are finding pension funding levels the healthiest

More information

OUTLOOK 2012: The Top 10 Investment Priorities for Nonprofit Organizations

OUTLOOK 2012: The Top 10 Investment Priorities for Nonprofit Organizations OUTLOOK 2012: The Top 10 Investment Priorities for Nonprofit Organizations OUTLOOK 2012: THE TOP 10 INVESTMENT PRIORITIES FOR NONPROFIT ORGANIZATIONS With the expectation that global capital markets will

More information

IPEBLA International Pension and Employee Benefits Lawyers Association. Liability Driven Investments: A Global Legal Perspective

IPEBLA International Pension and Employee Benefits Lawyers Association. Liability Driven Investments: A Global Legal Perspective IPEBLA International Pension and Employee Benefits Lawyers Association Liability Driven Investments: A Global Legal Perspective Rome IT, May 27, 2013 Speakers: Kees-Pieter Dekker, Van Benthem & Keulen,

More information

Investment Governance Practices for Foundations & Endowments

Investment Governance Practices for Foundations & Endowments Non-Profit Management Research Panel Investment Governance Practices for Foundations & Endowments In September 2013, the Non-Profit Management Research Panel conducted a poll to explore current investment

More information

Market-Based Cash Balance Plans

Market-Based Cash Balance Plans View the online version at http://us.practicallaw.com/5-597-5026 Market-Based Cash Balance Plans BRIAN C. DONOHUE, OCTOBER THREE CONSULTING LLC, WITH PRACTICAL LAW EMPLOYEE BENEFITS & EXECUTIVE COMPENSATION

More information

Pension Risk Management

Pension Risk Management Pension Risk Management 9 th Pension Law and Litigation Course June 11, 2013 Amanda Darrach Risky Business Insurance companies often describe themselves as in the business of managing risk So are pension

More information

This document introduces the principles behind LDI, how LDI strategies work and how to decide on an appropriate approach for your pension scheme.

This document introduces the principles behind LDI, how LDI strategies work and how to decide on an appropriate approach for your pension scheme. for professional clients only. NOT TO BE DISTRIBUTED TO RETAIL CLIENTS. An introduction TO Liability driven INVESTMENT HELPING PENSION SCHEMES ACHIEVE THEIR ULTIMATE GOAL Every defined benefit pension

More information

Understanding Pension Risk and the Benefits of De-Risking

Understanding Pension Risk and the Benefits of De-Risking Understanding Pension Risk and the Benefits of De-Risking Glenn O Brien Managing Director, Prudential Retirement Rohit Mathur Sr. Vice President, Prudential Retirement Increasing Longevity Matters U.S.

More information

Obligation-based Asset Allocation for Public Pension Plans

Obligation-based Asset Allocation for Public Pension Plans Obligation-based Asset Allocation for Public Pension Plans Market Commentary July 2015 PUBLIC PENSION PLANS HAVE a single objective to provide income for a secure retirement for their members. Once the

More information

seic.com/institutions

seic.com/institutions Nonprofit Management Research Panel Liquidity Pool Management for U.S. Colleges and Universities Gain a better understanding of your school s financial risks and the benefits of integrating the investment

More information

Lump Sum Payments for Terminated Vested Participants. 2012 Retirement Webinar Series March 8, 2012

Lump Sum Payments for Terminated Vested Participants. 2012 Retirement Webinar Series March 8, 2012 Lump Sum Payments for Terminated Vested Participants 2012 Retirement Webinar Series March 8, 2012 Lump Sum Payments for Terminated Vested Participants Today s Participants Joe McDonald Aon Hewitt Byron

More information

Nonprofits Focus on a More Robust Investment Oversight Process

Nonprofits Focus on a More Robust Investment Oversight Process Survey: Nonprofit Investment Challenges 2014 Nonprofits Focus on a More Robust Investment Oversight Process SEI s Nonprofit Management Research Panel recently completed a survey of executives and Investment

More information

CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM INNOVATION PORTFOLIO POLICY

CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM INNOVATION PORTFOLIO POLICY CALIFORNIA STATE TEACHERS RETIREMENT SYSTEM INNOVATION PORTFOLIO POLICY INVESTMENT BRANCH April 2016 O. Innovation Portfolio Policy EXECUTIVE SUMMARY In accordance with the CalSTRS Investment Policy and

More information

Pensions and the Future of Retained Risk

Pensions and the Future of Retained Risk Institutional Investor Corporate Financial Executive Summit Pensions and the Future of Retained Risk June 19, 2013 Glenn O Brien Managing Director, Pension Risk Transfer Prudential Retirement 0246029-00001-00

More information

Pension Liability Risks: Manage or Sell?

Pension Liability Risks: Manage or Sell? Pension Liability Risks: Manage or Sell? David Blake Pensions Institute Cass Business School The views expressed in this paper are those of the author(s) only, and the presence of them, or of links to

More information

Risks and Rewards Newsletter

Risks and Rewards Newsletter Article from: Risks and Rewards Newsletter August 2006 Issue No. 48 I NVESTMENT S ECTION A KNOWLEDGE COMMUNITY FOR THE SOCIETY OF ACTUARIES Issue No. 48 August 2006 RISKS AND REWARDS T HE N EWSLETTER OF

More information

Struggling of Japanese corporate pension plan with the low interest rate environment

Struggling of Japanese corporate pension plan with the low interest rate environment 1 Struggling of Japanese corporate pension plan with the low interest rate environment Takashi Kato 1 Abstract: Most plan sponsors in developed countries are seeking ways to maintain a sustainable corporate

More information

De-risking Alternatives for Plan Sponsors Compliance Requirements. April 16, 2015 Presented by: Michael Falk, Erin Kartheiser, and Steve Flores

De-risking Alternatives for Plan Sponsors Compliance Requirements. April 16, 2015 Presented by: Michael Falk, Erin Kartheiser, and Steve Flores De-risking Alternatives for Plan Sponsors Compliance Requirements April 16, 2015 Presented by: Michael Falk, Erin Kartheiser, and Steve Flores Today s elunch Presenters Michael Falk Partner, Employee Benefits

More information

An annuity buy-in transfers all the risks for a group of members from the plan sponsor s balance sheet to

An annuity buy-in transfers all the risks for a group of members from the plan sponsor s balance sheet to DB Solutions Risk less Annuity buy-in (Pensurance ) Risk transfer for underfunded plans An annuity buy-in transfers all the risks for a group of members from the plan sponsor s balance sheet to Sun Life

More information

GM Pension Settlement Actions

GM Pension Settlement Actions Consulting Retirement GM Pension Settlement Actions And Considerations for Plan Sponsors June 2012 On June 1, 2012, General Motors Co. (GM) announced a program that will settle approximately $26 billion

More information

Pensions Conference 2015

Pensions Conference 2015 Pensions Conference 2015 24 26 June Hilton, Glasgow Investment Strategies for DC Adapting defaults for Freedom and Choice Alistair Byrne, PhD, CFA Institute and Faculty of Actuaries Pensions Conference

More information

ELCA Investment Fund Descriptions ELCA Retirement Plan

ELCA Investment Fund Descriptions ELCA Retirement Plan FUND PERFORMANCE AS OF DEC. 31, ELCA Investment Fund Descriptions ELCA Retirement Plan Effective Jan. 1, 16 About the ELCA Retirement Plan Investment Funds The Board of Pensions of the Evangelical Lutheran

More information

Actuarial Speak 101 Terms and Definitions

Actuarial Speak 101 Terms and Definitions Actuarial Speak 101 Terms and Definitions Introduction and Caveat: It is intended that all definitions and explanations are accurate. However, for purposes of understanding and clarity of key points, the

More information

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES

MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES MERCHANT NAVY OFFICERS PENSION FUND STATEMENT OF INVESTMENT PRINCIPLES Introduction The main purpose of the MNOPF is the provision of pensions for Officers in the British Merchant Navy on retirement at

More information

Pension risk management: it s a brave new world

Pension risk management: it s a brave new world Pension risk management: it s a brave new world Pension risk management is on every boardroom agenda these days. For most companies, pension risk means volatility either in cash contributions or accounting

More information

Pension Terminology. Actuarial Equivalent A benefit having the same present value as the benefit it replaces. Also, the amount of annuity that can

Pension Terminology. Actuarial Equivalent A benefit having the same present value as the benefit it replaces. Also, the amount of annuity that can Actuarial Accrued Liability Computed differently under different funding methods, the actuarial accrued liability generally represents the portion of the Present Value of Future Projected Benefits attributable

More information

PPI. PRESS RELEASE FOR IMMEDIATE RELEASE Wednesday 27 June 2012

PPI. PRESS RELEASE FOR IMMEDIATE RELEASE Wednesday 27 June 2012 By 2020 there could be 16 million members of defined contribution pension schemes compared to less than 1 million members of defined benefit schemes in the private sector in the UK says Pensions Policy

More information

CFA Institute Contingency Reserves Investment Policy Effective 8 February 2012

CFA Institute Contingency Reserves Investment Policy Effective 8 February 2012 CFA Institute Contingency Reserves Investment Policy Effective 8 February 2012 Purpose This policy statement provides guidance to CFA Institute management and Board regarding the CFA Institute Reserves

More information

Using liability-driven investing to derisk corporate pension plans

Using liability-driven investing to derisk corporate pension plans EATON VANCE NOVEMBER 2015 TIMELY THINKING Using liability-driven investing to derisk corporate pension plans SUMMARY Defined benefit (DB) pension funding ratios remain near decade lows. Underfunded pension

More information

PENSION BENEFIT GUARANTY CORPORATION INVESTMENT POLICY STATEMENT OCTOBER 2015

PENSION BENEFIT GUARANTY CORPORATION INVESTMENT POLICY STATEMENT OCTOBER 2015 PENSION BENEFIT GUARANTY CORPORATION INVESTMENT POLICY STATEMENT OCTOBER 2015 I. INTRODUCTION The Pension Benefit Guaranty Corporation ( PBGC or the Corporation ) is a federal corporation created by the

More information

Long Term Investment Pool (LTIP) Investment Policy Statement Level 1

Long Term Investment Pool (LTIP) Investment Policy Statement Level 1 Long Term Investment Pool (LTIP) Level 1 CONTENTS I. OVERVIEW II. FINANCIAL GOALS OF THE LTIP III. INVESTMENT OBJECTIVES OF THE LTIP IV. INVESTMENT STRATEGIES OF THE LTIP V. PORTFOLIO REBALANCING VI. ASSET

More information

CPBI Saskatchewan Regional Council Alternative Investments - Worth the Effort?

CPBI Saskatchewan Regional Council Alternative Investments - Worth the Effort? CPBI Saskatchewan Regional Council Alternative Investments - Worth the Effort? PREPARED BY: Brendan George, Partner, George & Bell Consulting Inc. November 18 and 19, 2015 Agenda Current Economic Environment

More information

Pension plan terminations: Minimizing cost and risk

Pension plan terminations: Minimizing cost and risk Pension plan terminations: Minimizing cost and risk Vanguard commentary May 2011 It is well understood and accepted these days that the nature of a pension plan s liability affects its investment strategy

More information

WILLIS BREAKFAST SEMINAR

WILLIS BREAKFAST SEMINAR WILLIS BREAKFAST SEMINAR Defined Contribution Investment How To Achieve Better Outcomes For Members Thursday, 13 th March 2014 WELCOME AGENDA Introduction 8.00am Kirstie Flynn Defined Contribution Challenges

More information

Freezing Defined Benefit Plans

Freezing Defined Benefit Plans View the online version at http://us.practicallaw.com/6-502-3611 Freezing Defined Benefit Plans DAVID N. LEVINE AND LARS C. GOLUMBIC, GROOM LAW GROUP, CHARTERED This Practice Note provides a basic overview

More information

Ready 2012 Pension Pulse Survey

Ready 2012 Pension Pulse Survey Ready 2012 Pension Pulse Survey Spring 2009 As a result of increasing press regarding both the number of pension plans that have eliminated their retirement plan s benefit accruals to all or a portion

More information

Delayed Pension Payment Bulk Purchase Annuity

Delayed Pension Payment Bulk Purchase Annuity Delayed Pension Payment Bulk Purchase Annuity For employee benefit consultants, pension professionals and financial advisers only. Not approved for use with pension scheme members. Contents Delayed Pension

More information

LOYOLA UNIVERSITY EMPLOYEES RETIREMENT PLAN TRUST INVESTMENT POLICIES AND OBJECTIVES

LOYOLA UNIVERSITY EMPLOYEES RETIREMENT PLAN TRUST INVESTMENT POLICIES AND OBJECTIVES 1. Background LOYOLA UNIVERSITY EMPLOYEES RETIREMENT PLAN TRUST INVESTMENT POLICIES AND OBJECTIVES This Statement of Investment Policies and Objectives governs the investment of assets of the Loyola University

More information

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only.

For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. LGIM SOLUTIONS LEGAL & GENERAL INVESTMENT MANAGEMENT Buy-Out Aware. For the Trustees of Defined Benefit Pension Schemes and their Investment Consultants Only. Preparing for the endgame: a fund range specifically

More information

OPPORTUNITIES AND RISKS OF ALTERNATIVE INVESTMENTS BY PENSION FUNDS

OPPORTUNITIES AND RISKS OF ALTERNATIVE INVESTMENTS BY PENSION FUNDS OPPORTUNITIES AND RISKS OF ALTERNATIVE INVESTMENTS BY PENSION FUNDS 14th FIAP INTERNATIONAL SEMINAR Panama City, Panama, May 19-20, 2016 Nina Paklina Private Pensions Unit OECD Financial Affairs Division

More information

MERCER WEBCAST MEETING TODAY S CHALLENGES FOR 401(K) SPONSORS OCTOBER 22, 2014. Liana Magner Amy Reynolds

MERCER WEBCAST MEETING TODAY S CHALLENGES FOR 401(K) SPONSORS OCTOBER 22, 2014. Liana Magner Amy Reynolds MEETING TODAY S CHALLENGES FOR 401(K) SPONSORS OCTOBER 22, 2014 Liana Magner Amy Reynolds Today s speakers Liana Magner, CFA Partner US Delegated DC Leader MERCER W EBCAST Amy Reynolds, ASA Partner US

More information

WHAT CAN WE LEARN FROM SIX COMMON ANNUITY PURCHASE MISCONCEPTIONS?

WHAT CAN WE LEARN FROM SIX COMMON ANNUITY PURCHASE MISCONCEPTIONS? THOUGHTCAPITAL OCTOBER 2014 PENSION RISK MANAGEMENT: WHAT CAN WE LEARN FROM SIX COMMON ANNUITY PURCHASE MISCONCEPTIONS? For decades, an annuity purchase has offered a safe and effective way for DB plan

More information

Retirement Plans Investment Policy Statement

Retirement Plans Investment Policy Statement Retirement Plans Investment Policy Statement Adopted on August 18, 2015 Effective Date: August 1, 2015 INTRODUCTION Central Michigan sponsors a 403(b) and a 457(b) Retirement Plan (the Plans ) for the

More information

AFRICAN DEVELOPMENT BANK STAFF RETIREMENT PLAN

AFRICAN DEVELOPMENT BANK STAFF RETIREMENT PLAN AFRICAN DEVELOPMENT BANK STAFF RETIREMENT PLAN FINANCIAL SUSTAINABILITY OF THE SRP December 2009 2 Contents Executive Summary 5 1 Introduction.. 7 2. Current and projected financial status of the SRP.8

More information

Roadmap to DB Plan Termination From Frozen to Done

Roadmap to DB Plan Termination From Frozen to Done Roadmap to DB Plan Termination From Frozen to Done Speakers Sue Simon Principal, Regional Wealth Practice Leader Xerox HR Services Sue.Simon@xerox.com Kai Petersen Principal, Planning & Risk Management

More information

Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes

Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes Investment Implications for UK DC Schemes in Light of Tax and Regulatory Changes November 19, 2014 by William Allport of PIMCO With greater flexibility and choices available to DC savers in the latter

More information

Vanguard Global Capital Markets Model

Vanguard Global Capital Markets Model Vanguard Global Capital Markets Model Research brief January 1 Vanguard s Global Capital Markets Model TM (VCCM) is a proprietary financial simulation engine designed to help our clients make effective

More information

Pension Funding and Risk Management

Pension Funding and Risk Management Pension Funding and Risk Management White Paper Aligning Strategy To Manage Risk TABLE OF CONTENTS ABSTRACT... 2 BACKGROUND... 2 RECENT DEVELOPMENTS... 2 THE MARKET RESPONDS... 4 NEW OPTIONS: THE CAPTIVE

More information

Managing Financial Risk in Retirement and Benefits Programs

Managing Financial Risk in Retirement and Benefits Programs 2014 Managing Financial Risk in Retirement and Benefits Programs Translating Awareness into Action A report prepared by CFO Research in collaboration with Prudential Financial, Inc. Contents Research Sponsor

More information

Variable Annuity Pension Plans: A Balanced Approach to Retirement Risk

Variable Annuity Pension Plans: A Balanced Approach to Retirement Risk Variable Annuity Pension Plans: A Balanced Approach to Retirement Kelly Coffing, EA, FSA, MAAA Principal and Consulting Actuary Milliman, Seattle, Washington Grant Camp, EA, FSA, MAAA, Consulting Actuary

More information

Taking Target Date Fund Evaluation to the Next Level

Taking Target Date Fund Evaluation to the Next Level Taking Target Date Fund Evaluation to the Next Level Lori Lucas Defined Contribution Practice Leader Callan Associates Chicago, Illinois The opinions expressed in this presentation are those of the speaker.

More information

Overview. A Brief History. Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US

Overview. A Brief History. Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US Pension Policy for Financial Crises: Experience in Canada, Ireland, the UK and the US Gerard Hughes and John Turner Presented at the ENRSP Conference Protecting Pension Rights in the Economic Crisis Leuven,

More information

TIAA-CREF Life Insurance Company. Single Premium Immediate Annuities. Step closer to meeting your lifetime income needs.

TIAA-CREF Life Insurance Company. Single Premium Immediate Annuities. Step closer to meeting your lifetime income needs. TIAA-CREF Life Insurance Company Single Premium Immediate Annuities Step closer to meeting your lifetime income needs. Securing a lifetime of retirement income TIAA-CREF: Financial services More than 90

More information

Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies.

Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies. INSTITUTIONAL TRUST & CUSTODY Asset Management Portfolio Solutions Disciplined Process. Customized Approach. Risk-Based Strategies. As one of the fastest growing investment managers in the nation, U.S.

More information

UK longevity risk transfer market implications for Asia

UK longevity risk transfer market implications for Asia UK longevity risk transfer market implications for Asia David O Brien FSA MAAA FIA SCOR Global Life 1 Longevity 1 Global trends in longevity 2 UK Market developments 3 Applications for Asia Pacific markets

More information

PH&N LifeTime Funds. Investment Guide

PH&N LifeTime Funds. Investment Guide Investment Guide PH&N LIFETIME FUNDS Your One-Fund Retirement Solution A Leading Global Asset Manager for Canadian Investors Established in 1964, Phillips, Hager & North Investment Management (PH&N IM)

More information

2014 Hot Topics in Retirement

2014 Hot Topics in Retirement Consulting Outsourcing Retirement 2014 Hot Topics in Retirement Building a Strategic Focus Building a Strategic Focus Aon Hewitt is pleased to provide you with our 2014 Hot Topics in Retirement survey

More information

CREATING A CLEAR PATH TO PENSION PLAN DE-RISKING PENSION RISK TRANSFER STRATEGIES

CREATING A CLEAR PATH TO PENSION PLAN DE-RISKING PENSION RISK TRANSFER STRATEGIES CREATING A CLEAR PATH TO PENSION PLAN DE-RISKING PENSION RISK TRANSFER STRATEGIES STRENGTH STABILITY & INNOVATION DEFINED BENEFIT PLAN SPONSORS FACE UNPRECEDENTED RISK As plan sponsors look down the path

More information

Fiduciary Management at BNP Paribas Investment Partners A true partnership approach. For Professional Investors

Fiduciary Management at BNP Paribas Investment Partners A true partnership approach. For Professional Investors Fiduciary Management at BNP Paribas Investment Partners A true partnership approach For Professional Investors By taking the fiduciary journey with us, you are engaging in a true working partnership,,

More information

Single Premium Immediate Annuities

Single Premium Immediate Annuities TIAA-CREF Life Insurance Company Single Premium Immediate Annuities Step closer to meeting your lifetime income needs Securing a lifetime of retirement income TIAA: Financial services Nearly 100 years

More information

Sponsors Focus on Better Designing Plans to Meet Retirement Income Needs

Sponsors Focus on Better Designing Plans to Meet Retirement Income Needs Survey: Defined Contribution Trends 2014 (Part 1) Sponsors Focus on Better Designing Plans to Meet Retirement Income Needs Summary Defined contribution (DC) plan sponsors are increasingly engaging in internal

More information

The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust. Amended June 16, 2015

The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust. Amended June 16, 2015 The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust Amended June 16, 2015 Introduction The Lower Colorado River Authority ( LCRA )

More information

TOPIC: UMUC Request for Approval of Creation and Investment in a New Company to Commercialize Analytics Technology and Services

TOPIC: UMUC Request for Approval of Creation and Investment in a New Company to Commercialize Analytics Technology and Services BOARD OF REGENTS SUMMARY OF ITEM FOR ACTION, INFORMATION OR DISCUSSION TOPIC: UMUC Request for Approval of Creation and Investment in a New Company to Commercialize Analytics Technology and Services COMMITTEE:

More information

Retirement Planning Your Retirement Transition Plan

Retirement Planning Your Retirement Transition Plan Retirement Planning Your Retirement Transition Plan Planning Your Retirement Picture Your Perfect Retirement What do you want your retirement to look like? The definition of retirement has changed. Today,

More information

I. Introduction. II. Methods of Pension De-Risking

I. Introduction. II. Methods of Pension De-Risking TESTIMONY OF ROBERT S. NEWMAN Covington & Burling LLP ERISA Advisory Council United States Department of Labor Hearing on PRIVATE SECTOR PENSION DE-RISKING AND PARTICIPANT PROTECTIONS June 5, 2013 I. Introduction

More information

Verizon Announces $7.5 Billion Pension Settlement

Verizon Announces $7.5 Billion Pension Settlement Consulting Retirement Pension Settlement Trend Accelerates with Verizon Annuity Purchase Insights Into the Evolving Pension Transfer Environment October 2012 Verizon Announces $7.5 Billion Pension Settlement

More information

Understanding Annuities

Understanding Annuities Annuities, 06 5/4/05 12:43 PM Page 1 Important Information about Variable Annuities Variable annuities are offered by prospectus, which you can obtain from your financial professional or the insurance

More information

GUIDELINE NO. 6 PENSION PLAN PRUDENT INVESTMENT PRACTICES GUIDELINE

GUIDELINE NO. 6 PENSION PLAN PRUDENT INVESTMENT PRACTICES GUIDELINE GUIDELINE NO. 6 PENSION PLAN PRUDENT INVESTMENT PRACTICES GUIDELINE November 15, 2011 TABLE OF CONTENTS CONTEXT FOR THE GUIDELINE... 3 Prudent Investment Practices... 3 Self-Assessment Questionnaire...

More information

Is a cash balance plan right for your organization?

Is a cash balance plan right for your organization? Institutional Retirement and Trust Is a cash balance plan right for your organization? Since the first cash balance plan was established in 1985, many employers, both large and small, have adopted this

More information

Training 2 Hari Penerapan SPERIS dan SANBERRIS Dana Pensiun

Training 2 Hari Penerapan SPERIS dan SANBERRIS Dana Pensiun Redtop Hotel, Jakarta, Juni 2008 April 2009 Training 2 Hari Penerapan SPERIS dan SANBERRIS Dana Pensiun Asset-Liability Management: An Introduction ASOSIASI KONSULTAN AKTUARIA INDONESIA Contents Section

More information

From Pension Risk Management to Enterprise Risk Management André Choquet, FCIA, FSA

From Pension Risk Management to Enterprise Risk Management André Choquet, FCIA, FSA From Pension Risk Management to Enterprise Risk Management André Choquet, FCIA, FSA W W W. W A T S O N W Y A T T. C O M Presented at the 2006 Canadian Institute of Actuaries General Meeting Chicago, Illinois,

More information

Perspectives March 2015

Perspectives March 2015 Perspectives March 2015 Liability-Driven Perspectives Hibernation: Managing a Sleeping Bear F. Gary Knapp, CFA Managing Director and Head of Liability-Driven Investment Strategies Many asset managers today

More information

THE UNIVERSITY OF WESTERN ONTARIO RETIREMENT INCOME FUND

THE UNIVERSITY OF WESTERN ONTARIO RETIREMENT INCOME FUND Financial Statements of THE UNIVERSITY OF WESTERN ONTARIO Statement of Changes in Net Assets Available for Retirement Income Payments, with comparative information for 2012 2013 2012 Investment income

More information

RETIREMENT PLAN STRATEGIES

RETIREMENT PLAN STRATEGIES 0213702 For Plan Sponsor and Advisor Use - Public Use Permitted. RETIREMENT PLAN STRATEGIES De-risking pensions emerging opportunity through lump sum cash-outs under the Pension Protection Act of 2006

More information

Fiduciary Management. What is Fiduciary Management?

Fiduciary Management. What is Fiduciary Management? Fiduciary Management What is Fiduciary Management? Fiduciary Management can be defined as a pension management solution which focuses on achieving the long term goals of a pension fund within a defined

More information

Insights. Property & Casualty Insurance CFO Survey #3. Investment Strategies

Insights. Property & Casualty Insurance CFO Survey #3. Investment Strategies Insights September 2012 Property & Casualty Insurance CFO Survey #3 Investment Strategies The third installment of Towers Watson s Property & Casualty Insurance CFO Survey examines CFO perspectives on

More information

THE UNIVERSITY OF WESTERN ONTARIO PENSION PLAN FOR MEMBERS OF THE ADMINISTRATIVE STAFF

THE UNIVERSITY OF WESTERN ONTARIO PENSION PLAN FOR MEMBERS OF THE ADMINISTRATIVE STAFF Fund Financial Statements of THE UNIVERSITY OF WESTERN ONTARIO PENSION PLAN FOR MEMBERS OF THE ADMINISTRATIVE STAFF Statement of Changes in Net Assets Available for Benefits, with comparative information

More information

Investment Policy Statement. Sample XYZ Foundation NOT FOR CLIENT USE. Approved on <>

Investment Policy Statement. Sample XYZ Foundation NOT FOR CLIENT USE. Approved on <<date>> Sample XYZ Foundation Approved on By Board of Directors This investment policy statement should be reviewed and updated at least annually. Any change to this policy should be communicated in writing

More information

GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Investment Principles

GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Investment Principles GW Contracted-out Money Purchase Scheme ( the Scheme ) Statement of Principles This Statement of Principles (SIP) covers the defined contribution section of the Scheme. It is set out in three parts: 1)

More information

512 306 7400 www.dfaus.com/managed_dc January 2, 2014

512 306 7400 www.dfaus.com/managed_dc January 2, 2014 Item 1 Cover Page Dimensional SmartNest (US) LLC 6300 Bee Cave Road Building One Austin, TX 78746 512 306 7400 www.dfaus.com/managed_dc January 2, 2014 This Brochure provides information about the qualifications

More information

Pensions and Corporate Financial Performance Intricately Linked. Volume 2

Pensions and Corporate Financial Performance Intricately Linked. Volume 2 Pensions and Corporate Financial Performance Intricately Linked Volume 2 Pensions and Corporate Financial Performance Intricately Linked Volume 2 Table of Contents Introduction 2 Benefit Policy 4 Funding

More information

How will the new RP-2014 mortality tables affect my DB plan strategy?

How will the new RP-2014 mortality tables affect my DB plan strategy? PRACTICE NOTE How will the new RP-2014 mortality tables affect my DB plan strategy? Justin Owens, EA, FSA, Asset Allocation Strategist ISSUE: The Society of Actuaries (SOA) recently released new mortality

More information

MACOMB COUNTY, MICHIGAN Notes to Basic Financial Statements December 31, 2014

MACOMB COUNTY, MICHIGAN Notes to Basic Financial Statements December 31, 2014 Notes to Basic Financial Statements Note 8 Employees Retirement System Plan Description and Provision The County sponsors the Macomb County Employees Retirement System (the System ), a single employer

More information

Investment options and risk

Investment options and risk Investment options and risk Issued 1 November 2013 The information in this document forms part of the Product Disclosure Statement for the Commonwealth Superannuation Scheme (CSS), sixth edition, issued

More information

Statement of L. Randolph Hood, CFA, Prudential Financial on behalf of the American Benefits Council

Statement of L. Randolph Hood, CFA, Prudential Financial on behalf of the American Benefits Council Statement of L. Randolph Hood, CFA, Prudential Financial on behalf of the American Benefits Council Advisory Council on Employee Welfare and Pension Benefit Plans Working Group on Plan Asset Rules, Exemptions

More information

Investment Policy Statement

Investment Policy Statement Investment Policy Statement SCOPE OF THIS INVESTMENT POLICY This statement of investment policy reflects the investment policy, objectives, and constraints of the Village of Orland Park Police Pension

More information

Glide path ALM: A dynamic allocation approach to derisking

Glide path ALM: A dynamic allocation approach to derisking Glide path ALM: A dynamic allocation approach to derisking Authors: Kimberly A. Stockton and Anatoly Shtekhman, CFA Removing pension plan risk through derisking investment strategies has become a major

More information

TIAA-CREF Asset Management. TIAA-CREF Lifecycle Funds. A distinctive combination of benefits for plan sponsors and employees.

TIAA-CREF Asset Management. TIAA-CREF Lifecycle Funds. A distinctive combination of benefits for plan sponsors and employees. TIAA-CREF Asset Management TIAA-CREF Lifecycle Funds A distinctive combination of benefits for plan sponsors and employees. TIAA-CREF s Lifecycle Funds offer distinct advantages: Asset allocation glide

More information

U.S. Pension Risk Management. What Comes Next?

U.S. Pension Risk Management. What Comes Next? U.S. Pension Risk Management What Comes Next? November 2013 In 2012, there was an unprecedented amount of various settlement activities. In 2013, many pension plans financial positions benefited from a

More information

Annuitization lessons from the UK

Annuitization lessons from the UK IMF Seminar on Ageing, Financial Risk Management and Financial Stability The views expressed in this paper are those of the author(s) only, and the presence of them, or of links to them, on the IMF website

More information

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles GSK Pension Scheme ( the Scheme ) Statement of Investment Principles This Statement of Investment Principles (SIP) covers the defined benefit and the defined contribution sections of the Scheme. It is

More information

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles

GSK Pension Scheme ( the Scheme ) Statement of Investment Principles GSK Pension Scheme ( the Scheme ) Statement of Investment Principles This Statement of Investment Principles (SIP) covers the defined benefit and the defined contribution sections of the Scheme. It is

More information

It s your retirement.

It s your retirement. MNDCP It s your retirement. Keep it on target. And keep it simple. 1 Click to learn more! Looking for an easier way to invest for retirement? With these three simple steps, you can save more, invest wisely

More information

SELF-ASSESSMENT QUESTIONNAIRE PRUDENT INVESTMENT PRACTICES. November 15, 2011

SELF-ASSESSMENT QUESTIONNAIRE PRUDENT INVESTMENT PRACTICES. November 15, 2011 SELF-ASSESSMENT QUESTIONNAIRE ON PRUDENT INVESTMENT PRACTICES November 15, 2011 TABLE OF CONTENTS INTRODUCTION...3 1. PLAN ADMINISTRATOR ROLES AND RESPONSIBILITIES... 4 2. RESPONSIBILITY FOR ESTABLISHING

More information

INVESTMENTS for CAPTIVE INSURANCE COMPANIES

INVESTMENTS for CAPTIVE INSURANCE COMPANIES INVESTMENTS for CAPTIVE INSURANCE COMPANIES PLANNING FOR GREATER GOOD The mission of Wellspring Financial Solutions of Raymond James, is to help people do well, so they can do more for their families.

More information

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1

PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 PowerShares Smart Beta Income Portfolio 2016-1 PowerShares Smart Beta Growth & Income Portfolio 2016-1 PowerShares Smart Beta Growth Portfolio 2016-1 The unit investment trusts named above (the Portfolios

More information

Defined benefit pension plan derisking strategies

Defined benefit pension plan derisking strategies 2015 Defined benefit pension plan derisking strategies Prepared by the Pension Committee FEI Canada Policy Forum 5/1/2015 Defined benefit pension plan risks and de-risking strategies Readers will recall

More information

Selecting an Annuity Provider

Selecting an Annuity Provider Selecting an Annuity Provider In conformance with Department of Labor Interpretive Bulletin 95- As of December 3, 204 4/5 2606-5B For institutional plan sponsor/financial consultant use only. Not for use

More information

ETF Evolution: The Innovation of Exchange-Traded Funds

ETF Evolution: The Innovation of Exchange-Traded Funds Strategic Advisory Solutions September 2015 ETF Evolution: The Innovation of Exchange-Traded Funds Executive Summary Exchange-traded funds (ETFs) are investment funds traded on stock exchanges, much like

More information

LDI Fundamentals: Is Our Strategy Working? A survey of pension risk management metrics

LDI Fundamentals: Is Our Strategy Working? A survey of pension risk management metrics LDI Fundamentals: Is Our Strategy Working? A survey of pension risk management metrics Pension plan sponsors have increasingly been considering liability-driven investment (LDI) strategies as an approach

More information