Description: This article discusses the need for a better strategy for defined benefit pension plans. While pension costs per se can be considered independently of investment strategy, the volatility of costs cannot. Many defined benefit plan sponsors are acutely aware of this volatility and are freezing or terminating their defined benefit pension plans. From Pension Section News, September 2006, No. 62.

Description: Josh Bank explores the new Pension Section Web pages and provides readers with a map of the new features.

Description: Announcement of 2011 section elections.

Description: Andrew Peterson gives an excellent synopsis and editorial comments on the high points of the National Academy of Social Insurance’s 23rd annual Conference, held this January at the National Press Club in Washington, DC.

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: This article surveys social security developments around the world. We focus on China, Africa, countries with privatized individual accounts in South America and Central and Eastern Europe, and OECD countries.

Description: Behavioral Finance proposes that psychological and social factors influence financial and economic decisions, causing people to make decisions other than those predicted by conventional economics and which may not be optimal for them. This article strives to help defined benefit (DB) plan actuaries understand how concepts from behavioral finance may provide insight into the actions of the sponsors of defined benefit plans. We specifically explore how behavioral finance concepts may affect sponsors’ decisions regarding their plan’s preferred funding level and risk profile. Our hope is that actuaries can assist their clients in becoming aware of how these concepts may be affecting the quality of the sponsors’ decision-making process.

Description: This essay advocates that the transition from DB to DC plans won't be complete until plan sponsors offer programs of retirement income in their DC plans. The essay discusses the relevant actuarial and behavioral issues.

Description: Provides an overview of several EBRI studies on spending by older Americans and brings together with Society of Actuaries research on shocks in retirement.