River and Mercantile suggests that they use equity derivatives to provide contractual exposure to the equity market, but in a way where risk can be managed.
Tag: DB plan funded status
Pension plans’ funding rose a mere 70 basis points last year, according to Goldman Sachs Asset Management.
Actions taken by defined benefit (DB) plan sponsors helped them reduce Pension Benefit Guaranty Corporation (PBGC) premiums, according to a J.P. Morgan analysis.
“Looking forward to 2019, we think many plan sponsors will continue to explore risk transfer activities as well as review their investment policies to ensure they are aligned with an evolving market environment,” says Scott Jarboe, a partner in Mercer’s Wealth business.
Companies that estimate funded status for defined benefit (DB) plans say this is due to equity returns, as interest rates remained relatively flat.
Northern Trust Asset Management offers four considerations for setting DB plan investment strategy.