Description: A frustrating aspect of pension funding rules for U.S. plan sponsors is that contribution requirements are adversely correlated with business cycles. For example, not only did plan sponsors get hit with large contribution requirements in the perfect storm of the early 2000s, but many sponsors were prohibited from contributing in the late 1990s boom due to full funding limitations. This is the abstract of a paper that proposes that plan sponsors be allowed to contribute the normal cost as a deductible contribution each year. In hindsight, this would have allowed plan sponsors to pay for benefits as they accrued in the late 1990s and ultimately mitigated some of the crash of the early 2000s. The authors aim to demonstrate that a contribution policy allowing contributions to be at least equal to the normal cost will result in less volatility of contributions and improve the funded status over time.

Description: This paper analyzes the likely increase in volatility for a representative plan and then considers the implications of adopting a hedged portfolio as a means of reducing the increased volatility. It then analyzes the effects of adopting a stochastic funding method which represents a simple extension of traditional expected value funding methods. From The Future of Pension Plan Funding and Disclosure Monograph, M-RS05-1.

Description: Essay reforming healthcare where participants have a vested interest in reaching the best answer.

Description: Updated metrics for measuring financial stress among multiemployer pension plans in the United States.

Description: This session discussion is about what constitutes an adequately funded plan? It depends on your viewpoint. The session examines adequate funding from four different perspectives. From Record of the Society of Actuaries Vol. 14, No. 1.

Description: This session discussion is about the minimum funding requirements and maximum deductible limits currently in effect, including full funding limitations and funding standard account determinations. From Record of the Society of Actuaries Vol. 15, No. 3B.

Description: 1992 SOA Regional Meeting, Chicago. This session covered cash-balance plans and age-weighted profit-sharing plans, which were the hottest products in 1992 in the pension arena. Areas covered included their primary attractions, legal concerns, and funding issues.

Description: Panelists discuss recent developments in: Guaranteed Investment Contract [GIC] products, annuities for terminations of pension plans [terminal funding], settlement of obligations under Statement of Financial Accounting Standards No. 88 [FAS 88], and separate accounts and portfolio insurance. From the 1988 Record of Society of Actuaries, Vol. 14, No. 1.

Description: Book review of Steve Vernon’s Money for Life, Turn your IRA and 401(k) into a Lifetime Retirement Paycheck

Description: Highlights of recent media contributions by actuaries.