pensionfundingtargetsandstrategies(ppt25)-經(jīng)營(yíng)管理-文庫(kù)吧資料
2024-08-24 14:54本頁(yè)面
【正文】 rkets in the early years of this decade – creating the doomsday scenario for pension plans. ? Actuaryset long termbased financial assumptions did not react much. ? Thus, the dynamics of pension funding requirements changed dramatically. ? Treasury cut back the issuance of 30year bonds in 1998, and then eliminated them entirely in 2020. ? Yields on 30year Tbonds declined and the credit spread widened. ? It became apparent that a legislative remedy was required. ? Temporary relief was granted for 20202020 by raising the interest rate cap to 120%. Current Situation Let’s pare assumptions in the late 1980’s vs. today: * Potentially increases to about % with interest rate relief. 1988 2020 average contribution interest rate % % 30year Treasury yield % % maximum current 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:
黨政相關(guān)相關(guān)推薦
鄂ICP備17016276號(hào)-1