PT  - JOURNAL ARTICLE
AU  - Scott Kaplan
TI  - Effectively Addressing Pension and Longevity Risk in the Current Economic Environment
DP  - 2016 Sep 21
TA  - Special Issues
PG  - 8--13
VI  - 2016
IP  - 1
4099  - https://pm-research.com/content/2016/1/8.short
4100  - https://pm-research.com/content/2016/1/8.full
AB  - Ongoing market uncertainty, rising PBGC premiums, low—and possibly even negative—interest rates, and lengthening life expectancies are among the dynamics compelling plan sponsors and insurers with annuity obligations to re-evaluate pension risk and reconsider de-risking solutions. This article examines those dynamics and explores the strategies available to mitigate pension risk, while bolstering participants’ benefit security. Borrowing to fund, liability-driven investing, targeted buyouts, and longevity insurance and reinsurance are effective solutions in today’s economic environment. Resourceful solutions like participating contracts and products that enable premiums to be paid over time as funded status improves should also be considered.