Companies that sponsor defined-benefit plans areconfronted with a conundrum—whether to de-risk their pensionliabilities by transferring them to an insurance company ormaintain the liabilities in the hope interest rates will soonrise.

What's a pension sponsor to do? The answer is not an easy one,and at this juncture sponsors seem to be falling into threedifferent camps. Some are hanging tight waiting for interest ratesto rise and their funding status to improve. Others are not makingsignificant changes now, but are committing to implementingde-risking strategies as interest rates and their funding statusperk up. For the third, much smaller camp—like General Motors and Verizon—de-risking is the name of the game.

These varying decisions depend in large part on one'sexpectations of interest rates rising, and when this might actuallyoccur. If hindsight is a good predictor, the likelihood iscertainly not in 2013.