New economic reality means DB plan sponsors must focus on risk management

Bridgeford, Lydell C.
April 2008
Employee Benefit News;Apr2008, Vol. 22 Issue 5, p43
The article asserts that defined benefit plan sponsors are paying more attention to managing the risk in their plans because of the threat of a U.S. recession. A study by human resource consulting firm Hewitt Associates found that plan asset values closed in 2007 slightly worse than they had started. In the beginning of 2008, plans faced a $4 billion deficit, but increased to a position of $46 billion at year-end, closing at 96.7 percent funded.


Related Articles

  • Plan Sponsors Place Focus on Risk. Bridgeford, Lydell C. // Investment Management Weekly;4/21/2008, Vol. 21 Issue 16, p1 

    The article reports on the possibility that defined benefit plan sponsors in the U.S. will pay more attention to managing risk in their plans, due to the threat of a recession in the country, according to investment experts. According to HR consulting firm Hewitt, a $40 billion deficit was faced...

  • Good handling key to pension changes. Veysey, Sarah // Business Insurance;2/3/2003, Vol. 37 Issue 5, p25 

    Reports on the pressure faced by employers in Great Britain who sponsor defined benefit pension plans. Impact of falling equity markets on these plans; Issues involved in making amendments to a pension plan; Reasons why many companies have closed their defined benefit plans; Guidelines that...

  • Time to Adopt a New Defined Benefit Plan.  // Retirement News for Employers;Winter2012, p4 

    The article reports that employers, who have pre-approved defined benefit pension plans, must sign and adopt the plan for the approval of Economic Growth Tax Relief Reconciliation Act of 2001, to be eligible for retroactive remedial amendment and reliance.

  • Pension plan creativity key.  // Business Insurance;4/23/2012, Vol. 46 Issue 17, p8 

    The author reflects on the reasons why many employers have not chosen to use defined benefit plans.

  • DB plans remain entrenched. Barreto, Susan // Pensions & Investments;9/7/1998, Vol. 26 Issue 18, p30 

    Reports that according to a survey by Hewitt Associates company, defined benefit plans along with conservative investment approaches, remained entrenched in the nonprofit hospital arena. Name of the survey; Percentage number of hospitals which added the 401(k) plans since the survey was...

  • Employers Alter Retirement Plans As Workers Struggle to Save. Miller, Stephen // HR Magazine;Jul2009, Vol. 54 Issue 7, p11 

    The article reports on a survey which shows coverage changes being made by employers sponsoring defined benefit (DB) pension plans and defined contribution (DC) 401(k)-type plans in response to the economic downturn. According to the International Foundation of Employee Benefit Plans (IFEBP), a...

  • Taking stock of the DTLR's pension review. Conrad, Mark // Public Finance;5/24/2002, p12 

    Reports the minister approval to the contribution structure and defined benefit system of the Local Government Pension Scheme in Great Britain. Charge of pensions on local services; Changes in the local government employment patterns abs associated workforce characteristics; Plan for part-time...

  • The Impact of MAP-21. McGuinness, Kevin // Plan Sponsor;Feb2014, p3 

    The article discusses the study "Did MAP-21 Decrease Pension Contributions?" which analyzed the Moving Ahead for Progress in the 21st Century Act (MAP-21) on employers' funding of defined benefit (DB) pension plans.

  • Plan sponsors unite in pension coalition.  // Employee Benefit News;4/15/2003, Vol. 17 Issue 5, p24 

    Reports on the formation of the Coalition to Preserve the Defined Benefit System by U.S. employers sharing the same concern for the welfare of defined benefit pensions in 2003. Objective of the coalition; Importance of a strong defined benefit system according to industry executive Geoffry Kusch.


Read the Article


Sign out of this library

Other Topics