The financial strengths of defined-benefits pension funds have come under increasing scrutiny because differing methods of gauging the strength of a fund have spurred confusion.
Changes in the actuarial assumptions used by ratings agencies to determine the likelihood a pension system would be able to pay its promised benefits decades from now have put pressure on public and corporate plan sponsors forcing them to decrease costs. These changes come at the same time they look for ways to increase returns on investments.
A brief by the American Academy of Actuaries explains how different accounting methods used to measure the health of a pension fund create different results as to the solvency of a retirement plan.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
