Pension Finance Resources
Financial economics is influencing the way financial professionals view shareholder risk, including the risk from pension plans. Actuaries and others have been examining what place financial economics might have in the pension actuarial paradigm. The Task Force on Financial Economics and the Actuarial Model has compiled the following resources as an informational tool only, to aid actuaries in learning more about the issues. The opinions expressed or referenced here are not necessarily those of the SOA or its officers, directors or representatives.
(Note: Where available an online link to the resource is provided; in some cases, we are only able to provide the reference information)
The American Academy of Actuaries and the Society of Actuaries are pleased to announce the Pension Actuary's Guide to Financial Economics. Published in November 2006, this guide gives the practicing actuary everything you need to know to understand what's driving many changes today in the accounting, funding, and investing of pension plans, plus gets you prepared for those conversations with the savvy CFO. Printed copies of the guide are also available; anyone wishing to purchase a copy can do so by clicking here.
This link opens a Web page indexing over 100 articles useful for studying the principles of finance and their application to pension plans. Contrary opinions such as from the behavioral finance school and those who do not accept volatility as the definition of risk, are also represented.
The Pension Finance Knowledge Sharing Index is a Microsoft Excel file containing detailed information about articles which are useful to the study of the principles of finance and their application to pension plans. This information may be downloaded, searched and sorted. Original abstracts of the readings are included. When an abstract was unavailable, one was created from the opening paragraphs of the article or document.
This spreadsheet will perform examples of the tax arbitrage in Section 4 of the Pension Actuary's Guide to Financial Economicsand should only be used in conjunction with the guide.