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.
According to Mercer, developing a “journey plan” that outlines the strategic policy choices to move a plan to its ultimate destination is a step many plan sponsors have undertaken.
Willis Towers Watson offers investment considerations for sponsors of defined benefit plans.
Vanguard research questions whether the risk-matching precision of SMAs is worth the cost and complexity.
Mercer suggests pension sponsors should now focus on the shakeout that lies ahead, with the potential bifurcation between liabilities sold to insurers and the hard stuff kept on pension balance sheets, by using hibernation investing.
According to the researchers, sector diversification and yield curve positioning can help investors during rising-rate periods.
Mercer suggests key priorities for DB plan sponsors for 2018.