Contributor: Christopher E. Goebel, CFA
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5 Key Considerations for Your OPEB Plan
As many employers have fully funded and hedged their pension plans, some are beginning to turn their attention to other post-employment benefits (OPEB) liabilities as the next addressable source of balance sheet volatility. OPEB liabilities are valued for financial reporting purposes similar to pension liabilities, i.e., projected future benefits are discounted at prevailing interest rates…
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Bundled LDI – A Turnkey Approach for Small-to-midsize Corporate Pensions
Bundled LDI seeks to deliver the features of a custom-tailored liability hedging strategy with the simplicity of an all-in-one turnkey structure.
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Valuation Shenanigans Haunt Plans in 2023
Funding rules originally intended to provide contribution relief for corporate pension plans are now having the exact opposite impact, leading to tough decisions for many plans.
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Look Beyond the Obvious Impact of Rising Interest Rates
As most plan sponsors are well aware, the rapid increase in interest rates year-to-date has significantly reduced the size of their defined benefit pension liability. The discount rate for an illustrative liability with a duration of 12 years increased from 2.71% (12/31/21) to 5.61% (10/31/22), resulting in a 28% reduction in the size of the…
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Another Extension of Funding Relief?
A few clients have asked us recently for our thoughts regarding the potential for additional funding relief for single-employer DB plans. While we certainly aren’t Washington insiders, our common reaction was that we did indeed expect relief because 1) relief provided under prior legislation is scheduled to begin phasing out this year, 2) rates are…