pensionfundingtargetsandstrategies(ppt25)-經(jīng)營管理(存儲版)
【正文】 ent liability rate % %* Current Situation Here’s what those changes imply in terms of valuation results and contribution requirements: 1988 2020 2020 without relief with relief valuation interest rate % % % current liability rate % % % AAL funded ratio 84% 83% 83% CL funded ratio 115% 73% 81% regular minimum $ $ $ addtl. funding charge minimum with DRC Current Situation The typical pension plan today has a current liability funded status in the range of 8090%. Many, of course, are well below this level. ? Contribution requirements tend to spike dramatically as funded levels fall below 90%. ? However, contribution requirements in most cases lag emerging financial experience by roughly 23 years, due to the effects of: ? volatility relief ? fouryear averaging of interest rates ? asset smoothing ? allowable contribution timing delays. Current Situation Plan sponsors have typically not been proactive in addressing their declining funded positions – with a few notable exceptions. Why? ? They counted on smoothing to avoid the worst effects of the capital market situation, and that the capital market situation would improve over time. ? They counted on legislated solutions to mitigate contribution requirements. ? The implications in terms of future contribution requirements were not always made clear. ? The number of alternative funding measures made it hard to monitor results and determine/prioritize funding targets. Lessons Learned Poorly funded plans entail a number of adverse consequences, in addition to spikes in future contribution requirements: ? quarterly contribution requirements ? PBGC variable premiums ? participant notices re underfunding ? PBGC underfunding notice ? additional minimum liability/charges to shareholder equity. Lessons Learned Recent experience has exposed a need to better monitor CL funding, and potentially adjust funding over time so as to maintain a target funding level: ? 60% to avoid restrictions on benefit improvements ? 80%/90% to avoid additional funding charge + participant notice ? 100% to avoid quarterly contributions. ? 110% to avoid lump sum restrictions to top 25. ? 125% to allow section 420 transfers to fund retiree medical benefits (based on OBRA CL). Lessons Learned Other possible funding targets: ? FFL to avoid variable premium ? ABO to avoid additional balance sheet liabil
黨政相關(guān)相關(guān)推薦
鄂ICP備17016276號-1