Stochastic modeling to reflect investment risk in funding liabilities for pension plans

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By Bryan Jones | 19 November 2019
Retirement actuaries have an opportunity to help employers better understand the risks associated with their pension plans, which could lead to better decision making when managing these plans. By tweaking existing familiar concepts—the funding liabilities—we can leverage the understanding that employers already have about their pension plans to explain various risks, some of which are very pertinent to decision making.