Lockton Takes on PFaroe System for Pension Plans

The Web-based platform uses real-time analytics and projection models to manage risk.

Retirement consulting services provider Lockton Companies has adopted PFaroe, a Web-based platform that will aim to help the firm’s Retirement Services division analyze clients’ pension plans and optimize assets and liabilities to strategically manage plan risk. PFaroe will also allow Lockton to analyze potential scenarios that measure the impact of changing economic assumptions and market conditions, as well as model alternate asset-allocation strategies.

“Pension benefit obligations remain a significant risk to many plan sponsors,” explains Pam Devling, vice president and consulting actuary at Lockton. “Our approach to retirement consulting must be very holistic; looking not just at investments and liabilities on a standalone basis, but also at their interaction and how they may be affected by plan sponsor decisions or market movements. PFaroe’s real-time insights and detailed projection models will be of tremendous value to our clients’ plan design and risk transfer decisions.”

Matthew Seymour, CEO, RiskFirst, says: “The evolution of the pensions market in the US – whether this be through liability-driven investing or de-risking strategies – is making the ability to have real-time data across assets and liabilities vital. We are delighted that Lockton is using PFaroe to ensure that their clients have access to these important analytics in their own toolbox as they head towards their own end-games.”

Lockton Companies is a global provider of risk management, employee benefits, and retirement consulting services. PFaroe is a product of RiskFirst, financial technology business that offers risk analytics and reporting.