The recently-passed Moving Ahead for Progress in the 21st Century Act (“MAP-21”) provides temporary funding relief for corporate defined benefit plans. In this piece, we explain how the legislation effects regulatory discount rates and review the impact of MAP-21 on a hypothetical plan’s PPA reported funded status and required contributions. We further investigate what, if any, impact the legislation has on interest rate risk management strategies.

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NISA Funding Relief and Implications for Pension Investing

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