According to the Pension Benefit Guaranty Corporation (PBGC), there are more than 25,000 corporate pension plans in the United States.1

For each of these plans, managers in the sponsoring company make decisions on a regular basis about how much and how frequently to contribute to the plan and what investment strategy to pursue with plan assets. Until recently, the most common approach to these decisions taken by plan sponsors could be loosely characterized as: Let's make contributions at the minimum level permitted by regulation, and let's use a growth-oriented investment approach, trusting that over time the combination of market returns and legislative smoothing will lead the plan to be fully funded at a reasonable—and reasonably stable—cost.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.