A Business Insurance Perspective on Cutting Pension Plan Risks by Towers Watson Senior Consultant Jason Richards
Pension plan risk has grown to record levels. Most plans have grown larger, and so are more complex and increasingly costly to manage. Markets have become more volatile, and analysts and rating agencies are more sensitive to the financial risks associated with underfunded plans.
New U.S. regulations require sponsors to more quickly recognize deficits and make contributions. And there’s no one-size-fits-all approach when it comes to utilizing the provisions offered in the recently passed funding relief.
"A plan's funded status is an important benchmark in any risk management plan, and largely determines whether the time is right to take action and what types of actions are appropriate."