Description: In order for actuaries to play a valuable role in the realm of enterprise risk management ERM, they must provide value-added advice and quantitative analyses. In this paper, the authors use stochastic simulation technology to present a risk metric for defined benefit pension plans that provides improved measures of the plan’s solvency and provides a tool for pension plan managers to determine the value of risk mitigation activities.

Description: View the complete issue for the August 2014 Reinsurance News newsletter.

Description: The standard for measuring retirement income adequacy has been the final earnings replacement rate (usually targeted at 70%). But - does it work?

Description: An “eligible combined plan”allows the promise, funding and delivery of both pension benefits funded by the employer and salary deferrals funded by the employees

Description: This article discusses the non-qualified market opportunities presented by the new limitations imposed on qualified pension plans.

Description: In a world where pensions for new hires are predominantly provided with defined contribution plans, defined benefit plans have moved in many cases from being a strategic human resource management tool to being a source of volatile historic liabilities and costs that need to be managed downward. While the approaches for dealing with these liabilities broadly consist of risk transfer, settlement or funding, the precise options available will vary by country depending on the local pension framework and legal requirements. Any company with material global pension liabilities would be well advised to monitor these closely, in order to be able to take advantage of opportunities to de-risk, and to ensure that a global pension de-risking budget is allocated to the activities which are expected to yield the best returns for the group.

Description: This presentation discusses the use of Conditional Tail Expectation CTE as an alternative to other pension valuation methods.

Description: From the 41st ARC: a presentation focusing on risk management of a pension plan whose benefit is the greater of a defined benefit DB and a defined contribution DC plan. Hedging strategies are derived and illustrated, recognizing that the DB guarantee is like an option.

Description: Technological innovations are disrupting traditional business models, improving products, and enhancing the user experience.

Description: A new retirement option has been added to the defined benefit plan for federal workers to allow retirees to work part time while receiving part of their pension benefit.