Article on Pension Plan Risk Management Published in the Benefits and Pensions Monitor

Getting Off the Roller Coaster

Article by Philip Falls, Practice Leader, Investment Consulting, PBI Actuarial Consultants Ltd. published in the October 2014 issue of the Benefits and Pensions Monitor (BPM).


A pension plan’s major goal is to provide stable and predictable benefits for all members.  This can be called striving for benefit security.  Another goal is to provide those benefits at an affordable cost without taking on too much risk.  The amount of funded status volatility is a sign of the amount of risk that a plan is taking to provide those benefits.  Funded status volatility can be measured based on a plan’s solvency, going concern, accounting, or some combination of regulatory funding requirements.

In our experience, trustees sometimes lose sight of the goal of providing benefit security and, in the process, relegate important risk management discussions to the back-burner. Fiduciaries need to change the way they think about risk.

The full article was published in the Benefits and Pensions Monitor.

You can subscribe to the Benefits and Pensions Monitor here: