Description: Frequently risk is portrayed as something to be avoided, especially in public retirement plans. This paper argues taking risk is likely the prudent choice.

Description: This paper establishes a framework to analyze the volatility of corporate profits as a result of variability in accounting for pension plans. It models a Canadian corporation that maintains a defined-benefit pension plan and that has adequate cash flow to fully fund the pension plan, should it wish. Volatility of corporate profits is important because many senior executives have some component of their compensation directly related to corporate profitability and consequently do not want any surprises with respect to actual profits compared to expected profits. The volatility management techniques considered are investment policies for the pension plan, funding the pension plan, and an alternative plan design. The analysis is timely since changes are proposed to the accounting standards to eliminate most smoothing techniques. The results suggest that, depending on the investment environment, reduced volatility may be accompanied by by enhanced return, which is a result that few would expect.

Description: Investment volatility can lead to unacceptable levels of contribution volatility and wide swings in a retirement plan’s perceived funded status. This paper approaches the volatility problem from a plan design perspective.

Description: This paper focuses on when and how we retire.

Description: The abstract for a paper that focuses on when and how we retire.

Description: A supplemental report conducted in 2009 to contrast results of the 2008 study, 'Will Retirement Assets Last a Lifetime'? It discusses retirees confidence in having sufficient assets to fully fund their retirement, their willingness to take risk, efforts to control spending and their use of financial advisers.

Description: This article is a summary of the roundtable discussion with a group of panelists on how to appropriately measure public pension plan liabilities. The crux of the debate is whether public pension plans should disclose a market value of liability - MVL - or whether current disclosures are adequate.

Description: Discussion of the merits of solvency versus going concern funding targets for pension plans, and the connection with different risk-sharing deals.

Description: Pricing longevity swap reinsurance transactions consists of a number of different actuarial tasks, each of which hides potential pitfalls. The article outlines the pricing process, which includes a detailed analysis of current mortality experience of the portfolio to be transferred, choice and calibration of an appropriate model for mortality improvement trends and the calculation of a risk margin which reflects the uncertainty associated with the pricing best-estimate, which includes mis-estimation risk, model risk, longevity basis risk and stochastic uncertainty.

Description: This article explores reasons for plan sponsors to consider lump-sum payouts. The author suggests for plan sponsors looking to reduce risk, the factors outlined in the article suggest that sponsors may benefit from considering risk-transfer opportunities much sooner than they may have anticipated.