Description: This paper investigates the one-asset portfolios, mixed-asset portfolios, and a dynamic investment portfolio which allows a switch from an aggressive portfolio to a conservative one at middle ages.

Description: This paper discusses some key challenges of embedding guarantees in DC plans, including setting an appropriate guarantee level, designing effective cost funding and risk management strategies, and fair treatment of plan participants with different investment strategies.

Description: This report presents a framework that could be used by employers and employees to assess defined contribution retirement plan benefits.

Description: Discussion about the pros and cons of providing lifetime income options in defined contribution plans, and about the pros and cons of annuitization vs. structured payouts. Discussion triggered by an SOA research report authored by Steve Vernon.

Description: This paper examines the so called 1/n investment puzzle which has been observed in defined contribution plans whereby some participants divide their contributions equally among the available asset classes. It has been argued that this is a very naive strategy since it contradicts the fundamental tenets of modern portfolio theory. We use simple arguments to show that this behavior is perhaps less naive than it at first appears. We show that when we account for estimation error the 1/n rule has some advantages in terms of robustness and we demonstrate this with numerical experiments. From The Actuarial Research Council, Volume 38, No. 1.

Description: This session discussion was a primer on hybird pension plans, in particular cash balance plans and age weighted profit sharing plans. Included nondiscrimination issues, IRS issues and communication about the plans to participants.

Description: In March this year a charter for the new corporation, the College Retirement Equities Fund, was granted by the State of New York and it is expected that within a few months the Fund will begin operations as a supplement to TIAA annuities. The purpose of this paper is to describe this rather novel type of corporation, which presents some unusual and interesting actuarial problems. Comparisons of the performance of fixed annuities vs. variable annuities are provided.

Description: In this session at the SOA 2003 Washington, DC Spring Meeting, the panelists discuss the value of deferred taxes to the owner of an IRA, 401k or similar product. The time it takes for tax-deferral benefits to overcome typical penalties levied on early distributions is reviewed. They also discuss the effect of tax deferral on the risk profile of investments.