PT  - JOURNAL ARTICLE
AU  - Edward Root
AU  - Cynthia Mallett
AU  - Naomi Zwerling
AU  - Tom Toale
TI  - Strategic Liability Management: <em>Building a Glide Path Strategy to Manage Interest Rate and Longevity Risks</em>
DP  - 2013 Sep 21
TA  - Special Issues
PG  - 56--60
VI  - 2013
IP  - 1
4099  - https://pm-research.com/content/2013/1/56.short
4100  - https://pm-research.com/content/2013/1/56.full
AB  - Glide Path Strategy (GPS) may be thought of as a term for a transition from a traditional market-based asset allocation and returns model to one in which a defined-benefit (DB) plan’s benefit liabilities are the primary reference point for asset allocations and returns assessment as a DB plan’s funded status improves. This article discusses how the GPS provides a durable framework to support holistic and strategic DB plan management as the sponsor’s understanding of plan liabilities deepens, how a GPS can serve to facilitate managing risks that are important today, such as interest rate risk, and those that are expected to become more apparent in the future, such as longevity risk, and the ways in which major risk reduction methods work in building and sustaining a GPS over time.