Short Form Professional Development Videos -Pension Risk Transfer: Evaluating Impact and Barriers for De-Risking Strategies Recording

This video introduces an SOA Research Institute report on pension risk transfer, explaining how defined benefit plan sponsors increasingly use de-risking strategies to manage financial, longevity, and regulatory pressures. Steven Siegel, ASA, MAAA presents this innovative video. It traces the evolution of the pension risk transfer market from early regulatory changes and the 2008 financial crisis to large-scale annuity buyouts beginning around 2012 that expanded insurer participation and market capacity. The report outlines three primary approaches—lump-sum payouts, group annuity purchases, and full plan terminations—and emphasizes that risk transfer redistributes rather than eliminates pension risk. It also presents a structured framework to help sponsors evaluate objectives, assess economic liabilities, model alternatives, and execute transactions effectively, while highlighting ongoing innovation and expected continued market growth.

You can find the report here: https://www.soa.org/resources/research-reports/2021/pension-risk-transfer/

 

Contributors: Steven Siegel, ASA, MAAA; Jon Forster, ASA, MAAA