Description: The importance of financial wellness has been increasingly recognized in the last few years. More organizations are sponsoring programs to assist people in different stages of their life.

Description: The following topics were discussed at concurrent sessions: 1. Personal Security in the 1970's- United States and Canada, 2. Adjusted earnings for life companies, 3. Pension funding, 4. What about these younger actuaries?, 5. Sources of statistical information for actuaries, 6. Variable life insurance, 7. Models and decision techniques, and 8. Role of the actuary in expense control. From Transactions of Society of Actuaries 1970, Vol 22, Pt. 2, No. 63.

Description: This essay explores the role that the emerging defined contribution retirement system may be playing in the growth of wealth inequality in the United States. The current system leaves many Americans with little or no retirement savings. Those with higher accumulation levels appear to invest proportionally more in equities, which may have an exponential effect of balances over long time periods. The author hypothesizes that willingness to take investment risk involves the relationship between the amount an investor has accumulated and what she/he needs in order to cover basic costs of living. This is one reason that investors with greater accumulation levels may be able to earn higher rates of return. The essay concludes by suggesting that the U.S. defined contribution system should include all workers and provide additional fiduciary guidance. Examples reforms, both in the U.S. and other countries, are provided.

Description: In this paper, the authors have analyzed the Cash Balance pension and contributions using the methods and principles of financial economics, to give a market consistent evaluation of the costs of the CB liability.

Description: This is a short story on the retirement income calculator.

Description: This article gives insight into the economic atmosphere in the Netherlands after the financial collapse in the United States.

Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: Panelists discuss a new actuarial textbook. Addressed are the rationale for the book, layout, and some practical applications of financial economics in an insurance or annuities context. From the Record of the Society of Actuaries, Vol. 23, No. 2.

Description: Falling equity markets and interest rates have devastated pension plans worldwide during the past several years. The Standard & Poor’s 500 companies enjoyed a collective pension surplus of $252 billion in 1999. Even after the 2003 market rally, they face a deficit of $179 billion in 2003 Bianco 2003. These events have spotlighted the weakness of current funding and investment practices for corporate defined benefit pension plans. This article presents a case for securing all accrued benefits through “Full Funding.”