109 - Issues with Cash Balance Plans

Traditional cash balance plans may have been designed to be safe, secure and reliable sources of pension income. But in reality that is far from the case. Though stated account balances are indeed stable, expected lifetime income is anything but. On the other hand, benefits under cash balance plans with market-based formulas are likely to be much more stable. Another critical issue with these types of plans is funded status volatility. What hedging approaches are available to manage that?

Speakers:

Mr. Brian C. Donohue

October Three LLC

Credits:

CPD Credit: 1.50 EA Core Credit: EA Ethics Credit: EA Non-Core Credit: 1.50 EA Formal Credit: 1.50