PT - JOURNAL ARTICLE AU - Rohit. Mathur AU - Scott D. Kaplan TI - De-Risking in a Low-Interest-Rate Environment DP - 2015 Sep 21 TA - Special Issues PG - 48--53 VI - 2015 IP - 1 4099 - https://pm-research.com/content/2015/1/48.short 4100 - https://pm-research.com/content/2015/1/48.full AB - The persistent low-interest-rate environment is proving detrimental to the funding levels of defined-benefit (DB) pension plans in the United States and around the world. In 2014, for example, plan sponsors experienced significant declines in pension funding status, primarily due to the decline in interest rates coupled with the adoption of new mortality tables, which offset equity market gains. More recently, funded status has improved because of a modest rise in interest rates and positive equity returns.Despite these secular headwinds, reasons to de-risk remain plentiful, and the recent increase in pension derisking activity is reflective of plan sponsors’ response to the current pension landscape. Today’s interest-rate environment also offers a unique opportunity for sponsors of underfunded plans, which this article discusses in detail, along with recent evidence showing that reducing pension risk increases financial flexibility and creates shareholder value.