Description: Abstract for a paper that attempts to identify defined benefit plan design principles that provide valuable employee benefits at reasonable costs. From The Future of Pension Plan Funding and Disclosure Monograph, M-RS05-1. Presented at The Future of Pension Plan Funding and Disclosure Symposium held July 14-15, 2005 in Washington, DC. This monograph is a case study.

Description: The abstract for the paper Rationalizing the Security and Ultimate Delivery of Promised Private Retirement Plan Benefits: The Missing Asset

Description: The abstract for the paper Improving Pension Funding: What's in It for me?

Description: Abstract: Interest rate changes and volatile equity returns have contributed to significant funding and expense volatility for defined benefit plans in recent years. This paper will describe the design of an option contract with payouts that are tied to the combined impact of interest rates and investment returns on the funding level of a defined benefit pension plan. Current derivatives used by plan sponsors can limit exposure to one of these risks; however, a derivative that combines these risks may provide more targeted protection to a plan sponsor at lower cost. This paper discusses several considerations in designing such a derivative. It will also briefly discuss pricing of the option. Finally, the difference in potential outcomes between plan funding with and without option ownership will be demonstrated. As an outcome of the design work, a new way to visualize pension risk that may be useful in sponsor accounting disclosures will be shown.