(Photo: Shutterstock)
In March of 2020 we saw a significant downturn in the equity markets only to see an incredible recovery during the remainder of the year. Interest rates plummeted and remained low throughout the year. These economic changes resulted in material funding level volatility for pension plan sponsors, especially corporate pension plan sponsors. In this article we evaluate the effects of different asset allocation "glidepaths" typically employed by corporate pension plan sponsors and how they fared during 2020. These glidepaths are designed to help sponsors reduce the volatility of their funded status as funded status improves.
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.
