Funding policies for public pension plans have traditionally focused on managing payment obligations while also recognizing the long-term nature of retirement system benefit promises. However, to cope with today’s increasing potential for market volatility, plan funding strategies and actuarial models must also manage a plan’s investment risk profile. This paper discusses two alternative funding policies designed to align plan portfolio risks with liabilities and maturity.
Share this page
Public plans: Using risk profiles to manage funding
Funding policies for public pension plans must place more focus on investment risks.
These Cookies are used by us or third-party service providers to analyze how the Sites are used and how they are performing. We use the following service providers and you can learn more about their privacy policies and how to opt-out of their cookies by clicking on these links:
These Cookies are necessary for you to access and navigate our sites.
We use ‘social buttons’ to enable our users to share or bookmark web pages. These are buttons for third party social media sites. We use the following service providers and you can learn more about their privacy policies and how to opt-out of their cookies by clicking on these links: