Description: This article describes a simplified problem in pension plan financing and presents two questions about how it can be modeled. Answers to these questions will be discussed and their implications for traditional actuarial models will be presented in Part 2 of the article in the following issue of the newsletter.

Description: An update on the Capital Market Assumptions used for asset allocation maybe useful to actuaries given the parallels with the assumptions an actuary uses to measure plan obligations.

Description: This article summarizes the focus of the inaugural The Pension Conference which is the difficult investment environment for pension plans and the increased choice and competition that accompany that environment.

Description: This article explains why and how maturing defined benefit pension plans become increasingly unstable if they maintain asset mix policies that embody material mismatch risk between plan assets and liabilities. The implication is that asset depletion is a risk that mature plans should take very seriously. This means redesign should be a priority for pension plans facing this risk. From the Pension Section News, October 2011, Issue No. 75.

Description: The article has formulas for calculating the geometric return of a portfolio using the arithmetic return and the variance

Description: This articles focuses on real economics versus GAAP accounting and concludes that equities are an inferior investment for corporate pension funds.

Description: The article describes a dynamic investment strategy for defined benefit pension funds to de-risk the plan by changing the asset mix based on the funded ratio.

Description: This article presents the background around the Post Retirement Needs and Risk call for essays focused on: (1) defined contribution plan risk management strategies; (2) decumulation strategies for retirement and (3) long-term care financing. The important essays from that exercise are presented in this Pension Section News publication along with interviews of the winning authors.