Alternatives to Cash in Ensuring the Solvency of Defined Benefit Pension Funds

Since 2001, even some sound corporate sponsors have faced sudden and severe negative impacts on pension plan solvency due to poor equity market performance, record low interest rates and declining mortality trends. Following an overview of key accounting changes that have occurred internationally, t...

Full description

Saved in:
Bibliographic Details
Published in:Benefits quarterly 2008-07, Vol.24 (3), p.26
Main Authors: Hedges, Peggy, Lee, Ryan, Nielson, Norma
Format: Article
Language:English
Subjects:
Accounting changes
Defined benefit plans
Employers
Exposure drafts
Financial institutions
Financial instruments
Funding
Guarantees
Impact analysis
Interest rates
International Financial Reporting Standards
Legislation
Liability
Pension costs
Pension plans
Quality standards
Regulation
Securitization
Solvency
Trends
Valuation
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Since 2001, even some sound corporate sponsors have faced sudden and severe negative impacts on pension plan solvency due to poor equity market performance, record low interest rates and declining mortality trends. Following an overview of key accounting changes that have occurred internationally, this article reports on legislation and regulations developing in Canada to assist plan sponsors. The authors describe different instruments of financial guarantee that might be employed and identify several areas that require additional work to enhance those instruments' robustness and transparency. [PUBLICATION ABSTRACT]
ISSN:8756-1263
2168-3336