Benefits Think Helping defined benefit plan sponsors be more successful

Published Updated 6 Min Read

  • Longer duration plans—those with younger populations and traditional monthly paid benefits—are more sensitive to interest rate movements.
  • Older populations and cash balance plans tend to have shorter durations and react less to rate changes.
  • Note that different types of benefits with different durations can exist within a single plan as well.
  • More return focused at lower ratios.
  • Greater emphasis on LDI hedging at higher ratios
Mike Clark
Consulting Actuary

Clark is a consulting actuary at Principal. He is a fellow of the Society of Actuaries (SOA) and a member of the American Academy of Actuaries (AAA), the latter of which has significantly … Read full bio


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